Repairing Your Credit After Filing for Bankruptcy
Sept. 30, 2022
You have plans for your future, but when financial troubles hold you back, it may feel like you’ll never achieve those plans. It may seem like money problems will prevent you from reaching your dreams. However, there are financial tools available, such as bankruptcy, that can help you start over.
When you think about your options, take a look at bankruptcy and how you repair your credit after filing. You may find that bankruptcy gives you the new beginning you need to improve your credit score.
We understand the stress that financial problems can create. Our team at Schwartz, Hanna, Olsen, & Taus, P.C. is committed to helping our clients with a range of legal matters, including their financial troubles. It’s important to have the answers to your questions about filing for bankruptcy, and we’re here to help with our combined 80 years of legal experience.
If you’re located in the New Jersey areas of Middlesex, Somerset, Morris, Passaic, Essex, and Bergen counties, or anywhere else in the state, contact Schwartz, Hanna, Olsen, & Taus, P.C. for a free consultation.
How Long Does a Bankruptcy
Stay on Your Credit Report?
After filing, bankruptcy will be listed on your credit report for a set period of time, depending on the chapter that you file:
Chapter 7 bankruptcy will remain on your credit report for 10 years from the date of filing.
Chapter 13 bankruptcy will remain on your credit report for 7 years from the date of filing.
Does That Mean I Can’t Do Anything Requiring Credit for 7-10 Years?
Filing for bankruptcy doesn’t necessarily prevent you from making any major purchases for seven to ten years. What you can purchase and when you can purchase it depends on the chapter of bankruptcy that you file.
With a Chapter 7 bankruptcy, you may be able to buy a car upon discharge of the bankruptcy, which is usually four months after filing. It is also possible to buy a house two to four years after the discharge of a Chapter 7 bankruptcy.
With a Chapter 13 bankruptcy, it may be possible to purchase a car within six months of filing. It is sometimes possible to purchase a home one to two years after filing for Chapter 13 bankruptcy. Discuss your options for making major purchases after filing for bankruptcy with a knowledgeable bankruptcy attorney.
How Can I Rebuild My Credit?
It’s possible to rebuild your credit while the bankruptcy is still on your credit report. Know how to rebuild your credit after bankruptcy by following these steps:
Start by checking your credit report for errors. If you find any, dispute the errors. Wait 90-120 days after you file for bankruptcy to check your report.
Consider the financial mistakes you made before and plan out how you will not make those mistakes again.
Pay all of your bills on time and in full, if possible.
Apply for a credit-builder loan at your local credit union.
Apply for a secured credit card where you put down a cash deposit in order to use the card. Make sure you also pay it off on time and in full every month.
Taking these steps will help you rebuild your credit and improve your credit score.
A Better Financial Future Is Possible
Take charge of your financial future by learning about all of your options. As you consider filing for bankruptcy, speak with an experienced bankruptcy attorney. Our team at Schwartz, Hanna, Olsen, & Taus, P.C. can help you understand your options and how they will impact your financial future. We’re proud to offer personalized service by one of our partners to each of our clients. If you’re located in the New Jersey areas of Middlesex, Somerset, Morris, Passaic, Essex, and Bergen counties, or anywhere else in the state, contact our firm for a free consultation.