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Dealing with Your Credit Report after Bankruptcy

By Andy Snyder
Published: Wednesday, October 7th, 2009

With the worsening economy, more and more people are being forced to declare bankruptcy. And not only is this a financial problem for the bankrupted individual, but it will also largely affect his reputation. This is why bouncing back from bankruptcy is one of the most popular issue people seek credit report advice about.

There are two most common types of bankruptcies: the chapter 7 and the chapter 13 bankruptcies. The simplest and quickest kind of all bankruptcies, Chapter 7 is applied to those who have liquidated their non-exempt assets. Through a trustee appointed by court, all of your assets will be sold to pay off your debts. However, in most of these cases, there will be no assets to liquidate anymore.

The other popular type of bankruptcy or the Chapter 13 is more known as a wage earner plan. This allows the bankrupt individuals, who still have income, to develop a plan that will pay allow them to pay their creditors back in the span of three to five years. A trustee will also be appointed in these cases who will receive the payments from the individuals. In turn, these trustees will forward the payments made by the individual to the creditors.

As bankruptcy has been becoming more common nowadays, with the financial crisis and all, you should not worry much if you are one of the individuals who have experienced this ordeal. Again, as said earlier, with the right credit report advice, you can easily bounce back from having a rock bottom credit score to gaining your reputation and credibility once again.

One of the very first credit report advice that you should remember when recovering after bankruptcy is to be wary of companies offering to clear your report of the bankruptcy and improve your credit score in an instant. Companies like these are most likely scams, especially if they ask for a fee before doing you any service.

Another thing that you must to do rebuild credit is to get two secured credit cards. As the information about your bankruptcy would most likely stay on your report for seven to ten years, one important thing that you must do is to get new credit right away. This will help you recover your credit score again, provided that you spend wisely and pay your bills on time.

Seeking an expert’s help is also an important thing that you must do if you want to repair your credit score post-bankruptcy. Keep in mind that every financial step and transactions you make from now on should be done with a lot of extra precautions, so never hesitate to seek professional help. Financial consultants will be your best choice for assistance as they can give you the best credit report advice for someone on your position.

And lastly, pay closer attention on your expenses. Be your own accountant and monitor your finances really thoroughly. Like any sound credit report advice would tell you, keeping your own record of your expenses and credits will help you keep track of your finances and help you gain the good credit standing you are aiming for.

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