Monitoring, Repairing and Rebuilding your Credit - Life after a Chapter 7 Bankruptcy
After going through the chapter 7 bankruptcy process, you deserve a fresh start. However, if you do not take steps following your discharge to 1) monitor your credit; 2) clear up inaccuracies in your credit report; and 3) rebuild your credit, the opportunity you have following a Chapter 7 bankruptcy could be squandered. To get the most out of this opportunity, you should use the tools we offer through our website to 1) monitor your credit; 2) repair your credit; and 3) rebuild your credit.
Credit Monitoring
A low credit score makes it difficult to finance purchases such as cars, furniture and a house. So, it is critical that you monitor your credit after receiving your Chapter 7 bankruptcy discharge. Also, it can make it difficult to lease an apartment or obtain a student loan. Our experience indicates that if your credit score is 600 points or below prior to filing the Chapter 7 bankruptcy, it may increase as much as 150 points within 12 months after filing if you conduct yourself properly. Below is a link allowing you to check your efforts to bring up your credit score.
Credit Repair
What do you do if you find that your credit furnishers (i.e., the credit card companies) are not reporting your credit history properly after filing a Chapter 7 bankruptcy? There are certain procedures in place which will ensure that the furnishers are reporting accurately and the credit reporting agencies are doing their job properly. We have access to credit repair professionals located in and near the Los Angeles area who can assist you if the credit card companies are issuing false reports regarding your discharged debts after receiving your Chapter 7 bankruptcy discharge.
Rebuilding your Credit
To rebuild your credit, you should learn the healthy habits that make your credit score rise. Those include paying your bills on time, living within your means, and not submitting too many credit applications too quickly following a Chapter 7 bankruptcy discharge.
Also, obtaining a secured credit card may be the key to rebuilding your credit. A secured credit card requires cash collateral, such as a deposit, before the card is issued. If you demonstrate a good payment history, the secured credit card company may increase your credit limit without requiring additional cash collateral. Also, the card issuer reports to the three major credit reporting agencies which - in turn - starts the process of building a good post bankruptcy credit history. We have chosen to include a link on our website to apply for a secured credit card so that our clients may start rebuilding their credit right after they receive their bankruptcy discharge.
The best way to use your secured credit card is to buy a small number of items every month and pay the bill in full every month.
Financial Planning
Finally, financial planning and career building is important post bankruptcy. Pay yourself first. This is the cliché that every good financial planner uses when counseling their clients. To that end, the Law Offices of Michael H. Raichelson has developed relationships with competent financial planning professionals in and near the Los Angeles area that will work with you post bankruptcy to improve your financial health.
