Dean W. Feldman, Esq.

Winters Bankruptcy Attorney

Take Back Your Life!

Filing bankruptcy will likely result in a substantial decrease of your credit score. In many cases, however, the debtor’s credit score is already as low as it can go due to things like missed mortgage payments and non-payment for credit card debt.

It’s also possible that filing bankruptcy may improve your credit score because of the fact that most if not all of your unsecured debt will be wiped out and the debtor is prevented from filing again for a number of years. So many lenders may regard you as a good credit risk post-bankruptcy. It’s strongly advisable to begin working on improving your bankruptcy immediately after filing.

In order to rebuild your credit, you must indicate the ability to handle credit in a very responsible manner. In a nutshell, this means that you must pay your debts on time.

Checking Credit Reports

Check your credit reports and when you see inaccurate entries be sure to dispute them. Because not all creditors report issues to all of the credit reporting agencies you must review reports from all three of the major agencies. You should secure reports from Experian, Equifax, and Trans Union. Free credit reports are available from Creditkarma.com, AnnualCreditReport.com, and FreeCreditReport.com. Look for accounts that are listed on your credit report that are not yours. Look for any inaccurate information in the report. For tips on making corrections to your credit report, you should go to the Federal Trade Commission website. Usually, credit reporting agencies are very good about fixing mistakes. They ought to be because they can be sued for their mistakes.

Making Payments on Time

Paying your bills on time goes a long way toward fixing your credit. It may seem like a simple step but it can quickly make a huge difference. In fact, paying your bills on time is likely the most important you can do to improve your credit score.

Pay recurring bills, such as rent, telephone, and utility bills, in full and on time. To be on the safe side, if a payment is due on the first of the month, pay it by the 25th of the previous month. Consider setting up automatic payment deductions from your bank account for these payments to make sure you do not miss any of them.

Setting up automatic payments from your bank account can help assure that you make timely payments. Take the time to figure out how to do it. Have an agent from the bank walk you through the steps to set it up if necessary.

Seek Out & Secure Lines of Credit

In order to establish good credit, you need to seek out credit opportunities. After filing bankruptcy you will likely find lenders standing in line to extend lines of credit. You need to take advantage of those offers and demonstrate your ability to handle your finances in a responsible manner. Avoid applying for lines of credit where you are likely to be rejected. A rejection from a creditor may hurt your credit score. Be selective when applying for any lines of credit. And don’t apply to several at once. When you apply for a line of credit a hard inquiry is produced. Having a lot of such inquires may lower your credit score because you may appear to be a bad credit risk.

Make sure that you schedule a time to talk with an experienced Winters, CA bankruptcy attorney who can give you clear ideas on rebuilding your credit in a manner that’s tailored to your personal needs.