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Bankruptcy

• Bankruptcy, Can I Discharge Payday Loans, IRS Debt, Student Loan, Medical Bills or Child Support
• Bankruptcy Options: When You Have More Month Than Money Chapter 13 May Be Able To Help
• Can President Obama Your Save Your Home?
• Can I Rebuild My Credit After Bankruptcy?

Can I Rebuild My Credit After Bankruptcy?

Question I filed for bankruptcy protection and was able to stay in my home. Our home mortgage has stayed current and we would like to start rebuilding our credit score. Do you have any ideas for me?

Typically it's not a good idea to open a credit card for the sole purpose of rebuilding your credit. Simply stay current on your home and any unsecured/secured credit you still have. Over time this will naturally rebuild your credit score.

A Texas bankruptcy filing will stay on your credit report for up to ten years, but depending on the type of bankruptcy (Chapter 7 or 13), it could come off your reports after seven years. With that in mind, Over time the negative effect of a bankruptcy will minimize and the impact on your credit will be offset by your ability to pay on time. So even while bankruptcies stay on your credit report for many years after filing, it's not the end of your credit world.

Client's Success Story: I have a friend who filed bankruptcy years ago, and her story is a great example of this. She gradually improved her credit score by paying her bills on time and implementing the budget strategies learned in the budgeting classes provided at the time of bankruptcy. Then when the bankruptcy finally came off her credit report the score obviously went even higher.

If you don't currently have a credit card, and you decide to open one, I suggest that the balance is kept low and payed off each month. Use it for small purchases like your monthly gas allowance and pay the balance off each month. By consistently making your payments on time and keeping the balance low, gradually your credit score will improve. Keep in mind that following a determined budget and sticking to it is the only way to rebuild your financial future. If you have a credit card, use it wisely and don't fall back into the same trap lead you to bankruptcy in the first place. Pay your credit card balance each month, use it for small purchases that are predetermined in your budget and continue to make your payments on time.

If you are receiving calls from creditors or facing foreclosure contact the Bankruptcy Lawyers of the Law Firm of Fears & Nachawati at (214) 890 - 0711 or info@fnlawfirm.com