One of the biggest concerns people have when filing for bankruptcy is how they can, or if they can rehabilitate their credit after the bankruptcy case is over. Once your bankruptcy case is over, you are a prime candidate for the banks and the credit card companies. In fact, many of my clients get credit card offers while they’re in bankruptcy and before their discharge. The best way to rehabilitate your credit after you file for bankruptcy is to go out and get a secured credit card. Any credit card that is attached to your Social Security number every month will be reported to the credit reporting agencies. Therefore, you will want a credit card under your Social Security number, or you’ll want to become a co-signer on your spouse’s credit card using your Social Security number, where you can show that you’re paying your debt every month to the credit card company. As long as your Social Security is hitting the credit card, it’s hitting your credit report, and that is increasing your credit score. There are certain cards called secured credit cards, where you can deposit $500 into the card and use it every month. Even though these cards are not extending credit to you, they are reporting to the reporting companies that you’re paying your debt on time, and that will raise your credit score as well.
Once you file for bankruptcy, it is pretty likely that you will receive credit card offers relatively soon. The creditors know that you are not allowed to miss any payments. Even if you are just making small purchases on that card, it is important that you pay it off each month so you can begin building up credit. If you have questions about filing for bankruptcy or rebuilding your credit after having filed for bankruptcy, contact our office and schedule a consultation.
If you are in a difficult financial situation and require the services of an experienced bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options.