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What is the fastest way to repair credit after a bankruptcy?

Kent, WA |
Filed under: Bankruptcy

I've just finished the Chapter 7 process, and am wondering what I can do to repair my credit as quickly as possible?

Attorney Answers 4

Posted

As perverse as this sounds, the answer is probably to establish and use credit and show that you can use it responsibly (i.e., regularly pay it off). It may be difficult to find an institution that will extend you credit this soon after Chapter 7, but you can consider something like a secured credit card.

The foregoing is commentary regarding a general legal question. It is not intended to be legal advice specific to the reader's individual situation nor does it create an attorney-client relationship between the author and any reader. You are encouraged to contact a qualified attorney to discuss your legal situation.

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Posted

Just a thought, your inability to manage credit is what got you into bankruptcy, so don't be so anxious to start borrowing again. But, as was pointed out, you may need to get a secured credit card to start. You might also want to get a vehicle loan that you can afford and pay it off as agreed. A credit union is a good place to start to establish an improved credit history. The folks with the best credit scores are the ones who do not NEED credit, but use it wisely when the have it to use.

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2 comments

Douglas Jay Lineberry

Douglas Jay Lineberry

Posted

Perhaps we ought not be so hasty as to judge why people filed bankruptcy in the first place. Inability to manage credit may be the reason, as could job loss because of personal illness, job loss because of a terrible economy, large personal guarantees made by business owners of businesses that failed because of a terrible economy, sudden loss of income related to military deployment, etc. Bad things happen to good people too, not just irresponsible people.

Alan D. Walton

Alan D. Walton

Posted

Not judging at all, just pointing out that managing credit includes allowing for the unexpected. The required financial management courses teach this, as well as re-establishing credit.

Posted

The best way to reestablish your credit is to start using credit again. My Chapter 7 clients tell me that they get multiple credit card offers within months of their bankruptcy ending. The credit card companies know you cannot file a Chapter 7 again for 8 years, you are a good risk to them now.

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Posted

There is no fast solution, so stop looking for the impossible. Repairing your credit takes time & effort, which is why I have a 10 part series covering this topic among my many legal guides.

I am posting a link to the full list for you to review. Hope this perspective helps!

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