Minimizing the Effects of Bankruptcy
Chapter 13 bankruptcy records stay on your credit report for seven years from the filing date. Chapter 7 records appear for 10 years from the filing date. If the entry is accurate, it cannot be removed early, but it will fall off automatically.
After Chapter 7 bankruptcy, you will be free from the burden of overwhelming debts. You will also be in a good position to save money because you will no longer have large payments going toward your old debts. At the end of a Chapter 13 repayment plan, living on a budget will seem easy. You can use this discipline to save money for the future and strengthen your financial position.
Taking Charge of Your Finances
Rebuilding your credit is part of the recovery process. Studies show that a high percentage of consumers are offered new credit in the first three years after bankruptcy. In some cases, it’s possible to get a government-backed mortgage two years after bankruptcy. Here are a few of the steps that you can take to rebuild your credit.
- After bankruptcy, you can implement new money management techniques. To build a solid financial future, you should create a budget, set up an emergency fund and start saving for your goals.
- Keep a copy of your bankruptcy records and the discharge order. If a creditor tries to collect discharged debts, you will need this paperwork.
- If you are comfortable with reestablishing credit, you can open a secured credit card where the limit is based on the amount that you deposit in an account
- Request a free copy of your credit report each year. This can help you track your progress and make sure that all of the information is accurate.
If you’re overwhelmed by credit card debt and unpaid bills, bankruptcy could be an important step toward financial freedom. Call 405-216-0007 to schedule a free consultation at my office in Oklahoma City. I can help you compare the benefits of bankruptcy and other alternatives to see which option is best for you.