Expert Advice When You Need It Most
Posted almost 3 years ago. 11 helpful votes, 0 comments
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Review your credit reportObtain credit reports from Equifax, Transunion and Experian after your bankruptcy has been discharged. Carefully review your credit report to ensure that all debts are listed as “discharged in bankruptcy”. If any debt is listed as open, you will need to dispute the credit reporting with the credit bureau showing the open account. You can dispute the reporting online and you may need to include your bankruptcy discharge as an attachment to your dispute. If you would rather write the credit bureau a letter with your discharge, a sample letter can be found here: http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre13.shtm 2
Consider obtaining new credit after your discharge2. Consider obtaining a secured credit card or auto installment loan after your bankruptcy has been discharged. After filing bankruptcy, you will receive numerous offers to secure new credit. We caution you against going into debt after your bankruptcy has been discharged, however in order to re-establish your credit score, you will need to establish credit. We recommend you speak to a financial counselor before taking out new debt in order to determine the affordability of post-bankruptcy debt since the interest rate can be quite high. 3
Avoid credit pullsIf you are considering an auto loan, inform the potential lender that you have filed bankruptcy and all other relevant financial information but do not provide your social security number until you have received a quote on the car loan. When your credit is pulled by a potential dealer/lender your credit score goes down. Don't allow the lender to talk you into a credit pull and if the dealer tells you that they cannot quote you a price without running your credit, go to a different lender. 4
Consider re-affirming a car loan in your bankruptcy caseBy re-affirming an affordable car loan, you re-instate the loan. This means that your auto lender will report your payments to the credit bureaus thus establishing at least one trade line that will increase your credit score. However, be wary of a re-affirmation agreement. Your bankruptcy discharge will eliminate your obligation on your auto loan and many lenders will not require you to sign a re-affirmation agreement as long as you make your payments on time after your bankruptcy. If you do not sign a re-affirmation agreement and you are unable to make your payments after bankruptcy, the lender cannot collect a deficiency judgment (difference between the amount you owe on the car loan and the price received by the lender when your car is auctioned off) against you if the car is repossessed. 5
Consider credit piggybackingIf you have a family member or friend who has good credit, low debt and solid employment, ask your family member or friend to add you on to a credit card with a low balance. This will allow you to piggyback off of your family member or friend’s good credit after your bankruptcy is discharged. However, be mindful, if your family member or friend is late on a payment or unable to make a payment, your credit will suffer as a result. 6
Pay your debts on-time following your bankruptcy caseBy avoiding late payments after bankruptcy, you will increase your credit score much quicker after your bankruptcy discharge. For debts such as re-affirmed car loans, taxes, mortgages, student loans and other debts existing after bankruptcy, avoid late payments at all costs. Late payments can be devastating on your credit. To avoid late payments, you may want to consider setting up auto deductions from your bank account to make your monthly payments after your bankruptcy was filed. Additional ResourcesFor more information on your credit score, please visit www.myfico.com. Related Questions1 Attorney answers: 
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