Fixing Bad Credit After Bankruptcy

If your debt to income ratio has been out of balance for awhile you probably already had bad credit before you ever met with your bankruptcy attorney.

If your low credit score was due to debt then you will have an easier time rebuilding your credit after you file bankruptcy. This is only true if you were paying your bills on time prior to filing bankruptcy. If your considering filing bankruptcy you should try to file when your creditors least expect it and when you are not behind.

The biggest reason for filing during this time is if you stop paying your creditors and save up money for 2-3 months prior to filing the credit agencies will report you accounts severely overdue prior to you filing for bankruptcy.

However, if you file bankruptcy right away when you are not behind you are automatically protected and they can not collect on you. You goal should be to speed your case along as quickly as possible without delay. You can only do this if you know what you are doing and you know what demands are reasonable prior to asking your attorney to hurry up.

People are often concerned with obtaining a bankruptcy home loans right out of bankruptcy.

This is more than likely they could not get approved because of bad credit or their debt to income ratio was too high. One of the quickest ways to rebound is to not reaffirm your home loan and then to approach the lender and inform them you would like to refinance. You may have to wait two years after your bankruptcy.

However, during this waiting period you need to continue to pay on time. One way to insure you pay on time is to have automatic withdrawal done to your account. The account should be at a separate bank and should allow you to overdraw on the account in case something happen then the bank does not reject the charge. Most people don’t like automatic withdrawal.

[ReviewAZON asin="B000U0D3EU" display="inlinepost"]However, you need a place to live and doing it automatically forces you to pay it whether you have the money or not. Most attorneys will tell you not to reaffirm any of your debt. However, if you reaffirm your vehicles and they are not underwater you can begin to immediately establish credit. 6 months after your discharge you want to apply for a credit card.

Don’t apply for a secured credit card. You want to get approved for an unsecured credit card. Once you get on a list of secured credit cards it may be difficult to get a credit card without putting money down.

Lastly, you want to pull your free credit report and start taking all those inaccuracies on your credit report while you’re paying your bills on time. You should see a significant improvement in your score one you fix the inaccuracies.

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Fixing Bad Credit After Bankruptcy

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