Law Offices of Adele Schneidereit

Access to Credit After A Chapter 7 Bankruptcy

A clean financial slate means after your bankruptcy discharge, you can rebuild your credit and increase your credit score.
The few who have been able to maintain their monthly payments and keep their credit score high will see an initial drop in their credit score, but this is usually only temporary.
In time, a Chapter 7 bankruptcy often does more good than harm to people’s credit score.
One year after filing bankruptcy, most people have a higher credit score than on the day they started the bankruptcy.

After bankruptcy, it’s common for people to receive numerous offers in the mail.
The reason for this is after filing a Chapter 7 bankruptcy, a person cannot file another for eight years. Some lenders consider that a good financial risk. After bankruptcy, people should look for credit cards without unnecessary fees. Some of the post-bankruptcy credit card offers have higher interest rates. Also, try to pay off the balance in full every month to avoid interest charges.

After bankruptcy, take steps to rebuild your credit. Once a year, request a free copy of your credit report from each of the three major credit bureaus at AnnualCreditReport.com. Check to verify that delinquent accounts which were part of the bankruptcy are no longer reflected on credit reports. These will needlessly deflate your credit score. Make sure you report and repair errors. Your credit score should improve.