Jump to Navigation

Starting over financially after Chapter 13 bankruptcy

It's rare that a Tennessee consumer would be enthusiastic about filing for bankruptcy, but when facing enormous financial challenges, it is often the only way out of debt. Although many consumers are embarrassed to talk about their bankruptcy with others, it's not the end of the world. In fact, many people buy cars, open new lines of credit and even purchase houses a few years after filing for Chapter 13 bankruptcy. Although it won't happen overnight, it could happen sooner than one might think by getting back to basics.

A consumer's credit score takes a huge hit after a bankruptcy. This makes it difficult to apply for credit or make large purchases in the first few years following a filing. But fortunately, even though a bankruptcy stays on one's credit report for 10 years, a consumer doesn't have to wait that long to start rebuilding his or her credit.

Small steps can help a lot toward this goal. It's important to pull copies of one's credit report annually and check for errors. Paying bills on time is also a good idea. If any loans were not discharged in bankruptcy, show responsibility by paying them off, since any negative feedback can drop one's score even lower.

Despite what one would think, it's not a good idea to avoid credit altogether. The trick is to use it responsibly. Apply for a credit card and use it for small purchases. Pay it off monthly without incurring interest charges.

Rebuilding credit is hard work, but it is not impossible. By being proactive, a consumer can raise his or her credit score quickly and qualify for loans and credit sooner than expected.

Source: Huffington Post, "How to Rebuild Your Credit After Bankruptcy - Fast," Curtis Arnold, Oct. 15, 2014

No Comments

Leave a comment
Comment Information

What's Your Situation:

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close
Subscribe to This Blog's Feed Visit Our Bankruptcy Website

Our Office Location:

Richard Banks & Associates

393 Broad Street, N.W.
Cleveland, TN 37364-1515
Map & Directions

Phone: (423) 244-0009
Toll Free: (866) 596-8527
Fax: (423) 478-1175

FindLaw Network

Privacy Policy | Business Development Solutions by FindLaw, a Thomson Reuters business.