“How do I rebuild my credit score after bankruptcy?” is a question that we get from many of our clients who are considering filing for bankruptcy. Chapter 7 bankruptcy typically stays on your credit score for about 10 years, but many individuals start to re-establish their credit within two years. Below are a few things you may want to consider before you decide if Chapter 7 Bankruptcy is right for you.

Will Chapter 7 Bankruptcy Damage My Credit? 

If you’re considering filing for Chapter 7 bankruptcy, you probably have a damaged credit rating with late payments and accounts in collections. 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 here: www.castlelaw-kc.com/faqs/what-s-the-difference-between-secured-and-unsecured-debt.cfm

Every bankruptcy case is different, but there are still actions that an individual can take to boost their credit score following a bankruptcy discharge:

  • Use a secure credit card
  • Understand the problems and situation that led to your bankruptcy filing
  • Pay bills and debt on time
  • Try to keep same credit card
  • Avoid scams and fraud 
  • Develop smart spending habits

Our office wants you to succeed after filing for bankruptcy. Give us a call at 816-842-6200 to speak with an attorney about your financial situation, or click here to email us to schedule your free consultation.

Jason C. Amerine
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President and Owner, Castle Law Office of Kansas City
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