Is it Possible to Restore Your Credit After Bankruptcy?

Keep in mind that your credit score does not go to zero after a bankruptcy filing. Think about it….you just discharged all unsecured debts. So your score is ready, willing and able to increase!

Lee knows that most of his clients reestablish their credit after bankruptcy quite easily. And he is always happy to see them do so well shortly after their bankruptcy and well into their future.

Many of Lee’s clients didn’t believe a 700 or higher credit score would be possible to obtain after wiping out thousands of dollars of debt. Because they had heard, and believed the bankruptcy myth’s from well intentioned friends and family members, as well as the credit consolidation companies, who are owned by the banking system.

So don’t be afraid to find out the truth about bankruptcy and how filing for bankruptcy debt relief does not hurt your credit. But rather gives you the fresh start you deserve.

Here are some easy steps to take in order to rebuild your credit after bankruptcy:

-Keep up with payments on existing secured loans like mortgages or vehicles;

-Apply for a new credit card; for each new credit card, pay off the balance in full each month. 

-Make sure you do not over-extend on any new credit cards.

-Think twice about working with credit repair agencies.

As long as you take steps to rebuild your credit after bankruptcy, you could see your credit score increase within a few months. Here are some pointers:

-Save all paperwork from your bankruptcy case.

-Try to start saving money.

-Build a workable budget.

-Reestablish good credit by taking a credit card offered to you after bankruptcy, and using it just to build credit.

-Try to maintain your job and residence.

-Make an emergency fund.

-Set reasonable financial goals.

Carefully managing your credit after bankruptcy can quickly put you back above 700 which is the good-risk range.

Can I get an auto loan after my bankruptcy discharge?

Yes, auto loan lenders do not exclude those who have gone through bankruptcy. Generally, to get an auto loan or lease, you just need regular income and your bankruptcy discharge.

How long after Chapter 7 can I buy a house?

Depending on the type of mortgage you are seeking, you will typically have to wait between 1-2 years after the discharge of your Chapter 7 bankruptcy case to buy a house in New Jersey. However, with many lenders, you can qualify for a mortgage in less than 1-2 years. This depends on your income and how much money you can put down on a home.

Don’t hesitate to call Lee Abt today for your free bankruptcy phone consultation. Lee offers a no-obligation consultation so you can make an informed decision with confidence.