Bankruptcy |
| DUMBRIGUE LAW FIRM |
| 633 South Fourth Street, 2nd Floor, Suite 9, Las Vegas, Nevada 89101 * (702) 638-0505 Office * (702) 233-0506 Facsimile |
Contrary to what you may think, there is life after bankruptcy. However, challenges lie
ahead. Your credit score has been affected and your bankruptcy will remain on your
credit report for up to ten years. Nevertheless, you can start fresh and seize this
second chance to live debt-free with the right mind-set and the following resources.
REBUILDING YOUR CREDIT
Fix Your Credit Report
The first step is to request a copy of your free credit report from www.annualcreditreport.com.
You have a right to a copy of your credit report once every 12 months from each of the three
national credit bureaus (Experian, TransUnion, and Equifax).
Review your credit report for inaccuracies. Make sure that your bankruptcy information is correct
and that each debt is listed as “Discharged in Bankruptcy.” Each debt discharged in bankruptcy
must have a zero balance. If there are inaccuracies in your credit report, request an investigation
to correct those inaccuracies. Provide the credit bureaus with a copy of your discharge order.
If a credit bureau does not remove inaccurate information even after requesting an investigation,
you must request a reinvestigation. Continue to contact the credit bureau and, if necessary, the
creditor, until the inaccuracies are corrected or deleted from your credit report.
Apply For New Credit
The next step to rebuilding your credit is applying for new credit. Apply for new credit at least six
months after your discharge. Creditors may see you as a potential risk, but some creditors look
favorably on bankruptcy because of the simple fact that you cannot file again for the next eight
years. When applying for new credit, always shop for the lowest fees and rates.
The two types of credit you should have to rebuild your “credit-worthiness” are:
1. Installment credit (i.e., student loans, car loans, mortgages), which involves borrowing a
lump-sum amount and making periodic payments to pay it off.
2. Revolving credit (i.e., secured credit cards, unsecured credit cards), which involves a line
of credit that is replenished to its maximum amount after paying it off.
Do not overextend yourself on credit. You should have at least one or two credit cards, such as a
secured or unsecured credit card (i.e., Visa, MasterCard, Discover, or American Express) and a
store credit card (i.e. Sears, Home Depot). Use your card(s) for the sole purpose of rebuilding
your credit. Make small purchases and pay your entire credit card bill off every month. This type
of good financial practice will greatly increase your credit score and credit-worthiness.
Pay Your Bills On Time
The most critical step to rebuilding your credit is making timely payments. The first six months
after receiving a discharge is very important. You must show your creditors that you have learned
from your financial mistakes. Therefore, you have to pay your bills on time and practice good
financial habits!
Start Saving
The next step is to start saving. Open a savings account and create an emergency fund for those
inevitable rainy days. You should have at least $500 in your emergency fund. You don’t want to
be caught in a situation where you don’t have the funds to get you out of an unforeseen financial
predicament. Start saving today!
Remain Debt-Free!
The final step is to successfully maintain your goal to remain debt-free. This means being aware
of your financial affairs and considering your options before making any purchase. Be a
conscious buyer by shopping for the best rates and lowest fees. Be a responsible debtor by
utilizing the resources provided on this page. Remain positive about your financial outlook and
focus on successfully maintaining a debt-free life.
There is life after bankruptcy. You have the fresh start you need. However, it is your
responsibility to make the right financial decisions. It is also your responsibility to
ensure that your second chance at living debt-free is successful. Rebuild your credit
today!
ahead. Your credit score has been affected and your bankruptcy will remain on your
credit report for up to ten years. Nevertheless, you can start fresh and seize this
second chance to live debt-free with the right mind-set and the following resources.
REBUILDING YOUR CREDIT
Fix Your Credit Report
The first step is to request a copy of your free credit report from www.annualcreditreport.com.
You have a right to a copy of your credit report once every 12 months from each of the three
national credit bureaus (Experian, TransUnion, and Equifax).
Review your credit report for inaccuracies. Make sure that your bankruptcy information is correct
and that each debt is listed as “Discharged in Bankruptcy.” Each debt discharged in bankruptcy
must have a zero balance. If there are inaccuracies in your credit report, request an investigation
to correct those inaccuracies. Provide the credit bureaus with a copy of your discharge order.
If a credit bureau does not remove inaccurate information even after requesting an investigation,
you must request a reinvestigation. Continue to contact the credit bureau and, if necessary, the
creditor, until the inaccuracies are corrected or deleted from your credit report.
Apply For New Credit
The next step to rebuilding your credit is applying for new credit. Apply for new credit at least six
months after your discharge. Creditors may see you as a potential risk, but some creditors look
favorably on bankruptcy because of the simple fact that you cannot file again for the next eight
years. When applying for new credit, always shop for the lowest fees and rates.
The two types of credit you should have to rebuild your “credit-worthiness” are:
1. Installment credit (i.e., student loans, car loans, mortgages), which involves borrowing a
lump-sum amount and making periodic payments to pay it off.
2. Revolving credit (i.e., secured credit cards, unsecured credit cards), which involves a line
of credit that is replenished to its maximum amount after paying it off.
Do not overextend yourself on credit. You should have at least one or two credit cards, such as a
secured or unsecured credit card (i.e., Visa, MasterCard, Discover, or American Express) and a
store credit card (i.e. Sears, Home Depot). Use your card(s) for the sole purpose of rebuilding
your credit. Make small purchases and pay your entire credit card bill off every month. This type
of good financial practice will greatly increase your credit score and credit-worthiness.
Pay Your Bills On Time
The most critical step to rebuilding your credit is making timely payments. The first six months
after receiving a discharge is very important. You must show your creditors that you have learned
from your financial mistakes. Therefore, you have to pay your bills on time and practice good
financial habits!
Start Saving
The next step is to start saving. Open a savings account and create an emergency fund for those
inevitable rainy days. You should have at least $500 in your emergency fund. You don’t want to
be caught in a situation where you don’t have the funds to get you out of an unforeseen financial
predicament. Start saving today!
Remain Debt-Free!
The final step is to successfully maintain your goal to remain debt-free. This means being aware
of your financial affairs and considering your options before making any purchase. Be a
conscious buyer by shopping for the best rates and lowest fees. Be a responsible debtor by
utilizing the resources provided on this page. Remain positive about your financial outlook and
focus on successfully maintaining a debt-free life.
There is life after bankruptcy. You have the fresh start you need. However, it is your
responsibility to make the right financial decisions. It is also your responsibility to
ensure that your second chance at living debt-free is successful. Rebuild your credit
today!
| LIFE AFTER BANKRUPTCY |
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