Many people who face mounting debt have to resort to filing for bankruptcy because there are no other options. And although bankruptcy can serve as a reset button and a fresh start, there can be significant effects on your credit. In fact, a credit score typically plunges after filing for bankruptcy, in some cases up to 250 points.
But just because your credit score has plummeted, it doesn’t mean that your score is hopeless after bankruptcy. There are steps that you can take to repair your credit after bankruptcy, so you can truly start rebuilding your life. Through these practices, you can raise your credit score up again.
When it comes to repairing your credit, it’s best to completely start over. This means making sure you don’t owe anything so you can have a fresh start. This will give you the opportunity to keep your spending and debt under control and will guide your financial choices.
It’s always key to monitor your credit score so you can actively work to increase it and keep it healthy. Keeping tabs on your credit score will help you in making decisions and repairing it over time. Along these lines, it’s also important to keep a close eye on your credit report to make sure everything is accurate.
As you begin repairing your credit post-bankruptcy, it’s better to get a secure credit card or loan. These cards require a cash deposit on the credit line. Make your payments on time so that you avoid repeating history and incurring debt.
When you file for bankruptcy, it’s imperative to hire an experienced bankruptcy attorney because the bankruptcy process can be complex. It’s also a good idea to ask your attorney about repairing your credit. An experienced attorney has counseled clients who have come out on the other side and can help guide you.
Life after bankruptcy can seem uncertain and daunting, but you don’t have to do it alone. If you’re filing for bankruptcy and want to know about repairing your credit, please contact us at the Badgley Law Group. Our team is highly experienced in bankruptcy law and we are here to help you in this time of need.