Credit Concerns After Bankruptcy

April 24, 2012 by  Filed under: Bankruptcy 

Despite popular belief, filing for bankruptcy does not damage your credit. Although there are some things to be concerned about credit-wise after bankruptcy, the risk of further credit damage is not one of them. Anyone considering filing, or just exiting, bankruptcy should consider the following points about credit and your future of credit.

Current Concerns

The most important thing to remember about your credit and bankruptcy is that the damage has already been done. Long before you ever file for bankruptcy, your credit has already suffered a hit due to missed payments or delinquent account standings. What bankruptcy does is erase your delinquent account standings and resolve your payment troubles; thus, improving your credit score after the discharge. However, it is up to you to ensure that the newly erased debt gets reflected on your credit report. Not all creditors report the most up to date information right away, so it is your job to request your account be updated with the credit bureaus. You can do this by contacting your creditor to request that the account information be updated or provide the credit bureau with a copy of your debt discharge.

Future Concerns

Your future of credit is far better off after a bankruptcy than before, had you not ever resolved your debt problems. While securing new credit will take some time and planning, it is not impossible and you can definitely get a decent line of credit. The key here is long term goal development and planning for that goal. This means that you shouldn’t just jump into the first line of credit that comes your way, but shop around and find the best line possible. Post-bankruptcy you may be hard pressed to find a decent line of credit, but chances are you can still get a good interest rate. The difference will be that the line of credit with a better interest rate will also likely have a lower spending limit, which is more than acceptable at this point.

Since establishing yourself as a responsible borrower is key right now, a lower spending limit with a better interest rate is the best choice in credit. Rebuilding and repairing your credit is a marathon, not a sprint. This means that you need to maintain a responsible payment schedule on a smaller balance for a period of six or more months. Once you have achieved this goal you can move to the next step, a higher spending limit with a higher balance or even a secured line of credit. The key is patience and knowing that true credit repair takes time.

The Lee Law Firm is a Fort Worth,Texas bankruptcy firm that aims to provide local residents with high quality legal representation at affordable rates. Their attorneys are professional and compassionate, giving clients the personalized attention they deserve. When filing bankruptcy, the Lee Law Firm is the right choice to help in the face of financial hardship.

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