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Michael D. Hart, P.C.
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Life after bankruptcy: repairing your credit

Filing for bankruptcy can feel intimidating. You might think that your life will never completely recover, but this is not true. While your financials are affected for a period of time, this does not mean it will last forever.

People may be particularly concerned about their credit score. It is true, your credit takes a hit after filing bankruptcy, but it will not ruin your life. How can you fix your credit and your life after filing bankruptcy? Here is what you need to know:

Why do you need good credit?

Your credit score is important for a variety of reasons. High credit scores give you a better chance of qualifying for loans such as student loans, auto loans, a mortgage and credit cards. Landlords, insurance companies and even cell phone companies also look at your credit score.

Based on this you might be worried about how filing bankruptcy will affect your score. At first, it will go down, sometimes by as much as 200 points. However, this will not last forever. Bankruptcy remains on your credit report for approximately 10 years, but this does not mean you cannot take steps to work on raising your score right away. Additionally, the negative impact of bankruptcy decreases over time, so your score will not be in the pits forever.

Fixing your credit

While fixing your credit requires diligence and hard work, it is not impossible by any means. A few relatively simple ways you can raise your credit score are:

  • Paying bills on time
  • Completely paying all bills
  • Keep balances low on credit cards
  • Stay consistent and current

While these may be easier said than done, you can remain hopeful that they will have a positive effect on your score in due time. Your credit score is important and you should still commit to fixing it after bankruptcy.

According to Forbes, credit scores national are on the rise for all age groups. This could mean you have a good chance of recovering after filing bankruptcy. It is by no means the end of the world. You have options and with a little hard work, you can get back on your feet.

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Michael D. Hart, P.C.
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