Rebuilding Your Credit Score After Bankruptcy

The more I speak with or read articles by other bankruptcy and asset protection attorneys the more I realize that our clients ask us all the same questions. One very common client concern is rebuilding credit after a bankruptcy. Credit is not a legal issue, and repairing credit scores is not within my professional expertise. I look to my clients experiences and writings by other experts to learn what I can about credit repair. I recently saw in interesting blog post on the subject by Texas bankruptcy attorney, Brian Fears, Practical Ideas for Rebuilding Your Credit Score After Bankruptcy .

One suggestion in Mr. Fears' article is making sure you promptly pay loans that survive bankruptcy such as student loans or reaffirmed secured debt. The debts Mr. Fears refers to must be paid. However, too often, my own clients want to reaffirm unsecured credit cards in order to help rebuild their credit score. This is usually a bad idea. I don't think its worth obligating yourself to pay those credit cards that can be wiped out in your bankruptcy case. Good credit scores are helpful; cash is even more helpful. I try to convince clients to minimize post bankruptcy obligations even if it means taking longer to prove credit worthiness. Mr. Fears correctly advices that you should build post-bankruptcy credit scores based only on those debts which cannot legally be discharged in bankruptcy.

Comments

[JD at Chapter 7 - Chapter 13]

You and Mr. Fears are right in that people "should build post-bankruptcy credit scores based only on those debts which cannot legally be discharged in bankruptcy". I have seen clients, who think that they must have credit, make bad decisions in an effort to build credit and then have the decisions came back to bit them.

The best thing is for people who have filed bankruptcy to pay all of their post-bankruptcy bills on time.

[Milwaukee Bankruptcy Attorney]

Great post!
I have had some clients come in with scores in the low to mid 600's have their scores increase within a few months of the bankruptcy becoming final. On the other hand, I had one client who had a 638 before filing and his score dropped by 25+ points upon filing...

[Nancy]

Thanxs for this beautiful news..nice blog...

[Credit Score Scale]

People need to understand the credit score scale and know where they stand. Like they say, you need to know where you are before you can know where you are going.

[divorce lawyer Texas]

One of the reasons why anyone goes bankrupt is because of unpaid debts. In order for a bankrupt person to have a clean slate and start anew, he has to file for bankruptcy. When the case gets settled, I advise on avoiding debts all together. Otherwise, you risk another possibility of debt accumulation that can lead you to getting bankrupt again.

[best mortgage deals]

That would be a part of business. Trial is part of it. It's the way you handle things out and stand again.

[creditcardrays]

you worked hard to get this details...

[Scoremore]

i agreed,it's not really worth obligating to pay those credits that can be wiped into bankruptcy case.there must be information that will state how to learn or what to do to about credit repair..thanks for sharing this...

[anna]

As a lot of commentators on here have already said I would never advise a client to reaffirm credit card debt! It would totally defeat the purpose of the bankruptcy in my mind!
www.TheHansonLawFirm.com

[creditcardrays]

I am sure this information will change most of the peoples mind because credit score is always interesting subject for everyone.Credit scores are a reflection of financial dealings with lenders and/or creditors; a goodcredit score, therefore, will not only assure considerable savings on interest rates, it will also expedite the loan or credit approval process. Poor credit, on the other hand, will often result in the payment of higher rates for lesser credit or loan amounts and, very often, the outright denial of credit or a loan.