How it Works

Your Credit After Bankruptcy

Filing for bankruptcy does not mean that you will never be qualified for credit again, whether for a home, a car or consumer items. Many people draw back from bankruptcy as a debt relief solution because they worry that it will cause damage to their credit permanently.  They tend to overlook the damage late payments, missed payments and high debt continues to cause on that rating.  While bankruptcy will remain on your credit report for 10 years, you can take steps to begin reestablishing your credit the day your debts are discharged in bankruptcy.


Understanding Credit After Bankruptcy


Rebuilding credit after bankruptcy is something people do immediately after discharge.  If you are facing a serious financial crisis it can seem impossible to think how you can get your credit back on track. While bankruptcy isn’t an instant or quick fix, it can help you lay the foundation for a better financial future, one where you have the credit you need with manageable debt.


Many of clients who received discharged with either Chapter 7 or Chapter 13 bankruptcy cannot believe that they receive credit card solicitations only months after completing the bankruptcy process. Several qualify to finance a vehicle purchase soon after a discharge.


After your bankruptcy case is complete, there are some things you can do to actively improve your credit score. These include:


  • Opening a checking or savings account
  • Applying for a secured credit card
  • Paying your mortgage, rent, utility and secured credit card bills on time
  • Applying for store credit cards rather than paying cash
  • Applying for a loan with a co-signer who has good credit
  • Avoiding high interest payday loans
  • Keeping your income to debt ratio low
  • Paying your reaffirmed and, if you filed Chapter 13, debt repayment amounts on time


By taking steps to improve your credit rating, you may be able to see significant changes in a quite short amount of time.


We Can Help You


At Lozano Law Offices, we help clients understand that there is life after bankruptcy — a life much better than the one people live under the constant stress of overwhelming debt and creditor harassment. We are proud to have helped more clients get the debt relief they need while building a plan for a better financial future.


To schedule a free initial consultation, call us at (510) 538-7288 or contact us online. We can help you find out how the tools and protections of bankruptcy can help you build a sound financial tomorrow and put you in position to restore your credit.

Toll Free 1-877-4LOZANO for free consultation or Schedule an Appointment