Chapter 7 bankruptcy typically stays on your credit score for about 10 years, but many individuals can start to re-establish their credit within two years. Our Kansas City bankruptcy lawyer breaks down a few things you may want to consider when determining how to rebuild your credit after filing for bankruptcy.
Will Chapter 7 Bankruptcy Damage My Credit?
If you’re considering filing for Chapter 7 bankruptcy in Kansas City, you probably have a damaged credit rating with late payments and accounts in collections. With the assistance of our Kansas City bankruptcy lawyer, filing chapter 7 bankruptcy can help enable a fresh financial start, and stop the credit card companies and collections agencies from harassing you.
Will I Be Eligible for a New Credit Card?
It is not uncommon for an individual to get a credit card after a bankruptcy discharge. However, it will most likely have a lower spending limit and a higher interest rate. Some of our clients receive credit card offers immediately after they file for bankruptcy. We can’t stress the importance of doing your research before applying for a credit card after a bankruptcy discharge.
A secure credit card is usually the best option for someone who has recently filed for bankruptcy. You can learn the difference between secured and unsecured debt.
There Are Options to Help You Rebuild You Credit After Filing Chapter 7 Bankruptcy in Kansas City
Every bankruptcy case is different, but there are still actions that an individual can take to boost their credit score following a bankruptcy discharge, and our Kansas City bankruptcy lawyer is here to help in any way we can.
Here are some general tips for the bankruptcy process and post discharge
- When you start to rebuild your credit, use a secure credit card
- Understand the problems and situations that led to your bankruptcy filing
- Pay bills and debt on time
- Try to keep the same credit card
- Avoid scams and fraud
- Develop smart spending habits