Bankruptcy has the potential of giving you a clean financial slate; however, it also makes one worry that they’ll never have decent credit again. After all, it can stay on your credit reports for up to 10 years. But did it ever occur to you that your credit score after bankruptcy may not actually be as bad as you think? In fact, its impact on your credit score will eventually fade over time. So what you need to focus on now is restoring your credit. To do that, you can ask help from a trusted bankruptcy lawyer in Baltimore, Maryland.
Being eligible for bankruptcy is, in and of itself, an indicator that your credit is already in tatters. But you can begin rebuilding your credit right away by offsetting bad credit information with more positive ones. A good start would be seeking advice from a bankruptcy lawyer in Baltimore, Maryland so you know where to start. But we are also here to give you a quick overview of the things you can do.
Check if Your Credit Report Accurately Reflects Your Bankruptcy
Although you may think that your bankruptcy appearing on your credit report is a bad thing, it’s actually better than having delinquent and outstanding balances displayed. For any balances that should’ve been discharged through bankruptcy, the balances should be $0. Check every few months to make sure creditors are not continuing to report negative account information even after discharge.
Here are the things you should check:
- Accurate personal information
- Updated ‘accounts’ section
- Up-to-date employer information
- Discharged balances should reflect
Pay On-Time for Debts Not Included in Your Bankruptcy
Remember that not all of your debts will be discharged. These include student loans, alimony, and tax liens. So if you don’t want your credit score to dive down further, you should keep track of payments that need to be made. For federal student loans, you can try joining a repayment program that is tailored to your situation to help ease the burden while you focus on repairing your finances.
Don’t Give in to Credit Repair Companies
You may see plenty of ads from credit repair companies claiming they can remove bankruptcy from your credit report. In reality, they’ll just use your money to file a dispute that won’t go anywhere. If your bankruptcy report is accurate, there is nothing else they can legally do for you that you can’t already do for yourself anyway. So, instead of wasting your time and money trying to erase what has already happened, focus on fixing your financial future.
Get a Secured Credit Card
Secured cards often have annual fees and high-interest rates; however, you shouldn’t need them for too long. For this card, it will be backed by a deposit you pay. Also, the credit limit will typically be how much you have on deposit. You can use this card until such time your credit is mended enough to make you eligible for a better and unsecured card. Keep in mind, however, that you can be rejected for this type of card so read the requirements carefully before applying for one.
There are other things you can do to rebuild your credit after bankruptcy. To know more about it, get in touch with Atty. Richard Hackerman. He is a renowned bankruptcy lawyer in Baltimore, Maryland with more than enough experience in the field.