The Bankruptcy Explained Series – How to make your credit rebound after filing bankruptcy
How can you make your credit rebound after filing for bankruptcy?
Ryan Alexander: Las Vegas Bankruptcy Attorney
The most important thing I’ve learn from handling well over 1300 bankruptcy cases? Every single person is different, and every single case is different. There is no cookie cutter approach that will provide each person the individualized case results need and deserve. I know that this can be a stressful time. So I do my best to give you the best possible service, create the best possible outcome, all while treating you with respect.
I want to help people facing bankruptcy, which is why I created a Youtube channel. To date that channel has over 50 videos that almost 600,000 views.
How can you make your credit grow after filing bankruptcy?
How can I make my credit grow after filing for bankruptcy?
Filing for bankruptcy can have a significant impact on your credit score and overall creditworthiness, but it’s not the end of the world. Here are some steps you can take to rebuild your credit after filing for bankruptcy:
Get a secured credit card: A secured credit card is a type of credit card that requires a deposit, which serves as collateral for the credit line. These cards can help you establish a positive payment history and rebuild your credit.
Make on-time payments: One of the most important factors in building good credit is making on-time payments. This applies to all types of credit, including secured credit cards, installment loans, and utilities.
Keep your credit utilization low: Credit utilization is the percentage of your available credit that you’re using at any given time. Keeping your credit utilization low (below 30% is recommended) can help improve your credit score.
Check your credit reports for errors: It’s important to check your credit reports regularly to ensure that all the information is accurate. If you find errors, dispute them with the credit bureaus.
Consider a credit-builder loan: A credit-builder loan is a type of installment loan that is designed to help people build credit. These loans are typically offered by credit unions and community banks.
Be patient: Rebuilding your credit after bankruptcy takes time, and there are no quick fixes. However, if you make responsible credit decisions and practice good financial habits, you can gradually improve your credit score over time.
Remember, it’s important to be patient and persistent. Rebuilding your credit after bankruptcy is a gradual process, but with time and effort, you can improve your creditworthiness and financial standing.
Does it take long to get credit after filing for bankruptcy?
How long will it take to reestablish my credit after I file for bankruptcy?
The length of time it takes to reestablish your credit after filing for bankruptcy can vary depending on a number of factors, including the type of bankruptcy you filed, the state of your credit before you filed, and the steps you take to rebuild your credit.
A Chapter 7 bankruptcy, which involves the liquidation of your assets to pay off your debts, typically stays on your credit report for 10 years from the date you filed. A Chapter 13 bankruptcy, which involves a payment plan to repay your debts over a period of three to five years, typically stays on your credit report for seven years from the date of discharge.
While the bankruptcy itself will remain on your credit report for several years, you can begin rebuilding your credit immediately after filing. It’s important to start by creating a budget, paying bills on time, and keeping your credit utilization low. It can take several months or even years to rebuild your credit, but with time and responsible financial behavior, you can gradually improve your credit score.
It’s also important to note that some lenders may be hesitant to extend credit to individuals who have filed for bankruptcy. However, as you continue to rebuild your credit, you may become eligible for credit cards, loans, and other types of credit with better terms and interest rates.
Can I buy a house after I file for bankruptcy?
Will filing bankruptcy end the dream of owning a house?.
Yes, it’s possible to buy a house after filing for bankruptcy, but it may take some time and effort to do so. The specific timeline will depend on a variety of factors, such as the type of bankruptcy you filed and the type of loan you’re seeking.
For example, if you filed for Chapter 7 bankruptcy, which involves the liquidation of your assets to pay off your debts, you may need to wait two to four years after the discharge before you’re eligible for a conventional mortgage loan. On the other hand, if you filed for Chapter 13 bankruptcy, which involves a payment plan to repay your debts over a period of three to five years, you may be able to apply for a mortgage loan sooner.
Regardless of the type of bankruptcy you filed, you may be able to qualify for an FHA loan, which is a government-backed loan that allows borrowers with lower credit scores and higher debt-to-income ratios to buy a home. However, you’ll still need to meet the lender’s eligibility requirements, which may include a waiting period and other criteria.
In addition to waiting periods and eligibility requirements, it’s important to keep in mind that bankruptcy can have a significant impact on your credit score and overall creditworthiness. To improve your chances of qualifying for a mortgage loan, it’s important to take steps to rebuild your credit after bankruptcy, such as paying bills on time, keeping your credit utilization low, and disputing any errors on your credit reports.
