The entire point of filing for bankruptcy is to receive a discharge of your debt. You contact an experienced southern California bankruptcy attorney, make sure to provide them with all the necessary information, include every creditor in the paperwork…and then await the big day. Once you receive your bankruptcy discharge you’re done, right?
Many believe that to be the case, but they’re overlooking the big picture. The actual purpose of bankruptcy isn’t just to get rid of debt that is bothering you; the purpose of filing for bankruptcy is to obtain a fresh start so that you can have a healthy financial future. If you refuse to be a big picture type of person, then receiving your bankruptcy discharge will probably be your last step. But if you actually want to make the most out of your bankruptcy filing, then there’s still one more major milestone in your bankruptcy path: rebuilding your credit after bankruptcy.
It’s Time to Rebuild My Credit. How and When Should I Get Started?
Many bankruptcy filers don’t have an extensive history of bad credit. A large portion actually went into the bankruptcy process with decent to good credit. Bankruptcy provides relief to out of control debt or financial situations that have no other solution. They come out with a discharge of their debt for the immediate and effective relief from crushing levels of debt that they needed, but very quickly decide that they want their decent to good credit back.
The how question is fairly simple. To repair your credit after bankruptcy, you should first seek out an opportunity to obtain a secured credit card. It’s the simplest and most attainable method of restoring frequent positive reporting to the credit reporting agencies. A secured credit card will require that you provide a deposit to the company offering the card. They will then provide you with a “credit line” equal to the deposit that you provided. Using the card regularly and paying it off monthly will result in the credit card company reporting your on time payment to the credit reporting agency. This is exactly what you need to get back on the road towards a decent to good credit score.
The time to get started is immediately. Many assume that since they have only just received their bankruptcy discharge, they should wait to try to rebuild their credit. This is a useless delay. The quick answer to the common question, “When should I start to rebuild my credit after bankruptcy?” is NOW. Start immediately. Any time spent waiting is simply wasted time.
If you need assistance figuring out how to manage life after bankruptcy contact the southern California bankruptcy attorneys at Westgate Law. We can guide you towards a healthy financial future.