If you are someone who recently filed for bankruptcy, there is a very good chance that you are now breathing a sigh of relief. However, one of the few downsides of filing for bankruptcy is that it does negatively impact your credit. That being said, there is no need to panic–in fact, there are several steps you can take to ensure that your credit bounces back faster than you may have even though possible. Below, our seasoned New York bankruptcy attorney has compiled a short list of tips for rebuilding credit after filing for bankruptcy. Those tips are as follows:
- The first thing you must ensure you do is to pay off all accounts that were not discharged by bankruptcy. (Student loans, personal injury lawsuit payouts, etc.)
- Though it may not be easy right away, you must try to get a new credit card. Certain retail stores or gas stations are more likely to trust you with their credit cards than other standard credit card companies.
- Once you do get a new credit card, ensure you make your payments on time every month–you must be pristine.
- Keep a steady job. This will help you secure a new credit line. Lenders want to see financial stability.
- Do not apply for several credit cards at a time–this often comes across as though you desperately need credit, and are more likely to go bankrupt once again.
- Only apply for credit cards you think you have a shot at being accepted for.
- Never hire “credit repair companies.” The phrase “too good to be true” holds water here. You can repair your credit on your own with a little hard work. These companies are seldom the best route for you to take.
- If you are looking to rebuild your credit and you have someone that trusts you (such as a family member or a friend) you can ask them to be a co-signer. A co-signer essentially is someone who will co-sign on your cards or loans. This will repair your credit, on the condition that you keep a meticulous payment record. That being said, if you do not make every single payment on time, there is a very good chance that this will not only hurt your credit, but it will also hurt your co-signers credit.
Additionally, you should understand that within 10 years of filing for bankruptcy, your filing should be entirely wiped off your record–permanently. If you have any additional questions about rebuilding credit after filing for bankruptcy, please do not hesitate to give us a call. We are always here to help.
Contact our experienced New York firm
Bankruptcy, for many people, is a frightening endeavor. Fortunately, with the help of an experienced attorney, it does not have to be. If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options. We will have your back every step of the way.