How Do You Repair Your Credit after Filing For Bankruptcy?

Many people believe that after you declare bankruptcy your credit is ruined forever, or for at least the next ten years. This is a misconception and what few may know is that a foreclosure on your credit report will actually have a worse effect on your future credit status than a bankruptcy would. Even though a Chapter 7 or a Chapter 13 will remain on your credit report for ten years, this does not mean that your credit will be ruined during that time.

New Credit Offers May Appear

Surprisingly enough; you may start to receive credit card offers in the mail in the following months after the bankruptcy process has been completed. The banks know that you cannot file for bankruptcy again for some time and you are therefore considered a lower risk. The best attitude to take when it comes to obtaining more credit is to be conservative. Yes, you need to re-establish credit, but you also need to be conservative about doing so to avoid getting caught up in the trap of too much credit card debt.

Ways to Improve Your Credit

Now that you have a fresh start and can put your attention on the future, start operating on a budget. List out exactly what your monthly expenses are and don't exceed your budget. Start putting aside money into a savings account and use it only for emergencies. Apply for new credit and use the card (s) for paying off regular expenditures like food, clothing, gas, and so forth making sure you keep the payments on time and pay the full balance off each month. Do not spend more money than you make and again, stick to your budget. Set goals for yourself as to how you would like your financial future to be, and get help from a professional in the field who can help you even more with their expertise.

At The Law Office of John R. Himes, this is one of our specialties. At our firm, we are attorneys who focus on assisting clients dealing with bankruptcy. Should you work with an Indiana bankruptcy attorney from our firm, you can trust you will have an advocate on your side with a wealth of knowles. Our team has been helping people with financial difficulties for many years; we advise those who wish to file for bankruptcy including assisting those with credit repair problems. Many opportunities are closed to those who have no credit and we can help you devise a plan as to how to strategically rebuild it after bankruptcy.

Contact a Terre Haute bankruptcy lawyerin our office for a free consultation and we will go over the details of your specific financial situation and help you create a more prosperous future.