Restoring Your Credit after Bankruptcy
Depending on your circumstances, filing for bankruptcy can be an excellent way to begin working your way out of debt. However, once you have sold certain assets or followed a court-approved plan to repay your debts, you will still have some work to do. Repairing your credit score after a bankruptcy requires commitment and willpower, but it is definitely an attainable goal.
If you have any questions about the bankruptcy process, including useful financial strategies following bankruptcy, Austin bankruptcy lawyers Slater, Kennon & Pugh Ltd.LLP can help. To supplement the information in this article with advice tailored to your circumstances, call us at 512-338-1100.
Tips for Building Credit
Your bankruptcy will be noted on your credit history for about 10 years. However, while you are waiting for this time to pass, you can begin restoring your credit as soon as your debts have been repaid. Useful tips for building a stronger credit score include:
- Keep an eye on your credit report. Outdated or false information may be unfairly affecting your score. Under the Fair Credit Reporting Act, you have the right to make sure any errors in your credit history are fixed.
- Build a positive credit history. You may understandably be anxious about taking on new debt after bankruptcy; unfortunately, repaying debts is the only way to build good credit. You may want to get a new credit card that you only use for necessities, such as groceries or gas. Be sure to pay this card off every month, and resist the temptation to use it on luxury items.
- Budget carefully. This can be a difficult skill to learn, but it is vital to staying out of debt. Books and credit management classes can help you learn new budgeting skills, but be sure to only contact credit counselors who have been approved by the US Trustee.
Contact Us
Austin bankruptcy lawyers Slater, Kennon & Pugh Ltd.LLP are ready to assist with your bankruptcy in any way we can. Contact our offices today at 512-338-1100.