If you are currently considering bankruptcy, chances are that your credit score is not very good. Going through the bankruptcy process—while freeing you of the crippling debt that burdens your daily life—will likely have a further impact on your credit score.
However, there are some things that recent bankruptcy filers can do to help rebuild their credit scores. In some cases, people who follow these guidelines are able to attain a higher credit score than they had before they filed bankruptcy.
The first thing to consider before filing for bankruptcy is to consult with an experienced bankruptcy attorney to help you along the way. The experience that comes along with hiring an attorney is an invaluable resource to those who want to quickly get their life back on track after their bankruptcy.
After you have filed for bankruptcy, there are some basic things you can do to rebuild your credit:
Open Up a New Checking and Savings Account: Talk to friends and family and see where they bank, and if they like it there. Compare bank services as well as minimum balances and monthly service fees before opening an account.
Get a Credit Card: At first, you will probably have to open up a secured credit card, meaning that the credit card company will require you to keep the card’s maximum in the bank to ensure payment. However, over time you may be able to shift to an unsecured card, freeing up your capital as well as building your credit.
Pay Off All Balances Monthly: Don’t get into the same situation as you were in before bankruptcy. Pay off all bills as soon as they are due. That way you will avoid interest and late fees.
Keep On Top of Your Credit Report: Make sure to check your credit report occasionally and dispute any apparently inaccurate information that appears on your report.
Budget to Pay Bills on Time: Now that you have a fresh start, make the most of it. Budget your money at the beginning of the month to ensure that you will be able to pay all bills as they come due. Eventually, you should try and build up a small savings amount, in case something unexpected comes up.
Avoid Debt-Consolidation Companies: Most debt-consolidation companies are for-profit business that make money off their customers. Avoid paying them to take care of what you can do.
Are You Considering Filing for Bankruptcy?
If you are considering filing for bankruptcy, it is best to speak to a dedicated Kentucky bankruptcy law attorney before initiating the process. With the assistance of an attorney, you can rest assured that you have an experienced guide to help you through what can be a confusing and frustrating process. To learn more about filing for bankruptcy, and to speak to a dedicated Kentucky bankruptcy law attorney, click here, or call 866-366-3328 to schedule a free initial consultation.
More Blog Posts:
Bouncing Back After Bankruptcy in Kentucky, Kentucky Bankruptcy Lawyers Blog, published July 16, 2014.
Pizza Chain, Sbarro, Has Its Bankruptcy Plan Approved By Federal Court, Kentucky Bankruptcy Lawyers Blog, published May 28, 2014.