115 Morning Star Lane

Beckley, WV 25801

Establishing Credit After Bankruptcy
By Roop Law Office LC

Taking Positive Steps Forward After Discharging Debt

Ultimately, clients may look to establishing credit after bankruptcy, and Roop Law Office LC is here to help. If you filed bankruptcy under Chapter 7, Chapter 13, Chapter 11, or Chapter 12 and discharged plan obligations successfully, congratulations! You may be wondering, “what is next?” Now that you have a ‘fresh start’ after going through bankruptcy, keep taking positive steps forward.

There are many possibilities to consider, and you may wish to consult with Roop Law Office LC. We are here for our neighbors at (304) 255-7667 or contact us online. We want you to continue your success beyond bankruptcy discharge.

Congrats on a Fresh Start, “What Is Next?”

Roop Law Office LC in Beckley, WV, offers some timely advice on important credit matters after bankruptcy. Perhaps you have considered some answers as to “what is next?” Maybe the thought of debt at all does not feel possible. After going through bankruptcy and completing your plan, you may feel reluctant to have yet another plan of action. Take a look first at your credit report standing.

Monitoring Your Credit Report for Accuracy After Bankruptcy

Monitor credit reports regularly for any errors, and be sure to file disputes. If needed, you can seek to resolve these with the help of Roop Law Office LC. After bankruptcy, there may be unfair, inaccurate, or unverified accounts that appear on your credit report. It helps to be proactive in catching and resolving credit report issues before applying for new lines of credit.

One of the main items after bankruptcy is checking your credit report to ensure bankruptcy-related debt is accurate. If items appear as active or late, rather than as discharged, this harms your score. Also, any previous bankruptcy record does not need to be on your credit report longer than:

Seven (7) years (for Chapter 12 and Chapter 13 bankruptcy) or Ten (10) years (for Chapter 7 and Chapter 11, bankruptcy).

Plans Work When It Comes to Debt Management

After bankruptcy, you may see where having an established debt management plan can be a positive step. Consider setting up a similar plan for non-bankruptcy accounts. You can outline a payment plan for items like student loans or support payments.

Paying down on your other debt lowers your debt-to-income ratio. Paying more than the monthly minimum payment, and paying on time also boost your credit score. Work on maintaining a steady income over the next couple years. Your job history is another factor that influences lending decisions.

Ready for New Credit? Be Smart and Savvy in Selecting

A fresh start after bankruptcy may feel like a great time to establish new credit. It can be important to do this to show responsibility in managing debt. Consider such options as getting a small loan or applying for a secured credit card. Knowing you have a low, established limit of debt may motivate you to keeping it under control. Another smart option is to consider being a cosigner or authorized user on someone else’s credit account.

Be savvy in applying for certain types of retail, merchant, or gas cards. Cautious applicants check their credit rules before applying. If the lender declines your application it can affect your credit score negatively. Some companies do not report to the major credit bureaus actively, but most do. Be sure to know if your credit inquiry or eventual account will appear.

Manage Your Payments Actively to Ensure Success

After a successful bankruptcy, there are ways to manage payments. Use digital technology at your fingertips to enroll in autopay and set reminders to make payments. Paying more than once a month or paying off the full balance each month can avoid interest or late charges.

By monitoring your budget and keeping balances low, it can help you monitor the percentage of your available credit. Most credit experts recommend keeping this ratio at less than 30 percent. This indicates to lenders that you are able to manage what you borrow. Roop Law Office LC hopes you find these tips helpful in establishing credit after bankruptcy.