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Life After Bankruptcy

Ten (10) Must Know Secrets For Rebuilding Credit
  There is Life After Bankruptcy!  Your ability to re-establish credit after filing bankruptcy is better than ever.  After you get your bankruptcy discharge, you will receive many solicitations from lenders offering to finance homes, vehicles and credit cards.
And why not?  Bankruptcy gets rid of debt and getting rid of debt is the first step for re-building credit. Getting rid of some debt puts you in a better position to handle more credit.  In fact, many, many former clients have told us they started getting credit card offers right away, within weeks after their bankruptcy case was done.
Here are some tips on how to rebuild your credit.
1.  Open a checking or savings account. And, start saving some money. You will need money for down payments. The more money you can pay down on a purchase, the lower the interest rate you will get. Besides, lenders may look at how you handle a checking and savings account as one indication of whether or not you can responsibly handle money.
2.  Apply for store and gas credit cards where you would normally pay cash.
 3.  Apply for a secured card where you deposit cash and charge against it. Make sure you only apply for secured cards with a company that promises to report regularly to the major credit reporting agencies.
The major credit reporting agencies are Equifax (www.equifax.com) , Experian (www.experian.com) and TransUnion (www.transunion.com). They maintain your credit record. Think about it. What good does it do to get a secured card from a company that does not report to the major credit bureaus? Pay back advances in a timely fashion to build a track record of paying on time, so that they will be reflected as positive marks on your credit report.
4.  Pay your utility bills and rent on time. After filing bankruptcy, building up a history of paying on time is crucial.
5.  Find a friend or relative to cosign for you on a loan and pay it on time. But be careful here.  If you don't pay it or don't pay it on time, you will do significant damage to the credit record of the friend or relative who was kind enough to cosign for you.
6.  Look for car dealers and mortgage brokers that claim to be "bankruptcy friendly". Buy a used car so you do not get hit with the depreciation that occurs during the first two years of a new car purchase.
7.  Stay away from payday loans and finance companies that are at high interest rates and are a "bad credit" trap. These outfits will suck you dry and leave you back in debt.
8.  Write a letter to each credit reporting agency explaining the circumstances that lead to you filing. You are allowed to submit up to 100 words of explanation to each credit reporting agency.
9.  Live within your means. If you don't have the money, don't spend it. If it helps, limit yourself to what you need rather than like in the old days that lead you deep into debt when you bought everything you wanted whether you needed it or not. And, as a rough guideline, try to make sure your payments on consumer debts don't exceed 20% of your expendable income after your costs for housing and a vehicle.
10.  Pay your remaining debts left over from your bankruptcy on time. This is worth repeating. This includes things like non-dischargeable taxes, student loans, car loans, truck loans, and house mortgages. This is crucial...if you want to reestablish your credit.
11.  BONUS TIP! (Sorry, I guess 10 Secrets For Rebuilding Credit sounded better than 11 Secrets!) Make sure the information on your credit report is accurate.  The best way to do this is to get an updated copy of your credit report.  After filing bankruptcy, it's probably a good idea to get an updated credit report every 6 months for a year or so. 
How do I get a copy of my credit report?  The easiest way is to get it directly from one of the 3 major credit reporting agencies.  Each of them offers a "3-in-1" credit report, which simply means a credit report containing all the information from all three of these agencies.  The best way to order your credit report is "online".  You can go to any of these websites: Equifax (www.equifax.com) , Experian (www.experian.com) and TransUnion (www.transunion.com).  There is also other valuable information on these websites, including: (1) information to help you understand your credit score, (2) further information on how to rebuild your credit, and (3) information on how to fix any errors that may appear on your credit report.
You also have the right to receive one (1) FREE credit report each year.  Your right to one (1) free credit report per year is mandated under the Fair and Accurate Credit Transaction Act of 2003.  There is only one official website:
www.annualcreditreport.com.
At this website, you can order a copy of all reports compiled by the three major credit-reporting agencies:  Equifax, Experian and Trans-Union.  This site can also be accessed through a link at the Federal Trade Commission (FTC) website: www.ftc.com.
You can also get your FREE credit report by calling toll free to: 1-877-322-8228.
You will need to provide your name, address (and previous address if you have moved recently), Social Security Number and date of birth. You will be asked to answer some authentication questions to make sure that it is you...and not somebody else...trying to get your information, such as when was your last mortgage or car payment.
WARNING: FAKE SITES
There are fake sites, and lots of them. Be on the lookout for fake "free-credit-reports" sites that lure you into buying credit monitoring services.  The Federal Trade Commission has already identified at least 130 such sites.  Here's the test:  If you are asked for your credit card number, you are likely at a fake site.  Pop-up ads or email messages claiming to be for the official web site are probably scams.
Which Credit Report Should I Request?
Ask for copies of all three agencies' reports...Equifax, TransUnion and Experian...as the information listed with each agency sometimes varies due to factors such as out-of-date listings or wrong account numbers.
What's In The FREE Credit Report?
The reports from the 2 major credit reporting agencies differ in style and appearance, but they all contain 4 basic categories of information:
• Identifying Information
• Credit History Information
• Public Records Information
• Inquiries For Your Information
What Your FREE Credit Report Does NOT Include.
Unlike the credit report, information about your credit score is NOT FREE.  But it's more important.  Your score can affect many things, including your ability to get loans, your insurance premiums, and even your employment.  Scores range from 300 to 850 and are used to predict how likely you are to pay your bills on time.  The higher the score, the better off your are.
You can order a copy of your credit score, which is based largely on credit history, from all 3 major credit reporting agencies at the official site:
www.annualcreditreport.com.
The fees for a copy of your credit score are as follows (as of 1/1/08):
• Equifax: $6.95
• Experian: $5.00
• TransUnion: $5.95
What Should I Do With My FREE Credit Report?
Check the entire report to make sure it is accurate and pay close attention to items such as loan balances, credit limits and past-due amounts.  Make sure that you recognize each account, including mortgages, loans and credit cards.  If you don't know the creditor, check it out.  Sometimes companies change their names, or it could be a fraudulent account.
   Closely review all negative information to make certain the amounts and dates of delinquency match personal records.  Also look for out-of-date accounts.  Negative information should remain on credit reports only for seven (7) years.
How Do I Handle Disputed Information?
If you find an error or unknown entry on the report, you should notify both the creditor and the credit agencies (www.equifax.com, www.transunion and www.experian.com).  Credit reporting agencies usually have 30 days to investigate, make corrections and give customers an updated report that does NOT count as their annual freebie.  Document the dispute in writing!

 

 

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Blog for Life After Bankruptcy

Library for Life After Bankruptcy:

  • After Missouri or Illinois Bankruptcy, Is Getting a New Job Impossible?   
    Description: Many are under the impression that it is impossible to get hired again with a Missouri or Illinois bankruptcy on your credit report. But is that really true?
  • How Long Will Bankruptcy Affect My Credit History?   
    Description: If you are filing Missouri or Illinois bankruptcy, you may be concerned with how long a bankruptcy will be on your credit and what kind of effect it will have. You may be surprised to hear the positive possibilities.
  • After Bankruptcy, Can Your Creditors Keep Bothering You?   
    Description: One of the biggest benefits to filing Missouri or Illinois bankruptcy is that you can finally be relieved of those harassing creditor calls. But what if they call after your bankruptcy is over?
  • Missouri and Illinois Bankruptcy and Your Livelihood   
    Description: What does Missouri and Illinois bankruptcy really have to do with your livelihood? Will your job be affected by bankruptcy? What about your family? You may be surprised to find out how positive the results can be.
  • What Happens if You Incur Debt after Your Missouri or Illinois Bankruptcy Filing?   
    Description: A Missouri or Illinois bankruptcy can take care of your debt like no other tool. However, incurring debt after your bankruptcy can get you into trouble quickly--and you can be left without an easy solution.
  • Can I File Missouri or Illinois Bankruptcy Again?   
    Description: The ability to file Missouri or Illinois bankruptcy again is unique to each situation, though there are a few steadfast rules. However, wouldn't you rather avoid having to file again all together?
  • Ten Ways To Improve Your Credit Score After Bankruptcy   
    Description: A history of debt and delayed payments or a bankruptcy filing can do significant damage to your credit score for at least a few years. However, there are a number of steps you can take to begin to improve your credit score immediately after you emerge from bankruptcy in Illinois or Missouri.
  • How Should a Credit Report Look After Bankruptcy?   
    Description: There is no number that you can expect your credit to be at after you've filed for bankruptcy. There is, however, some good news about the direction of your credit score once you've gotten rid of your debts...
  • The Biggest Rules to Follow in Money Management   
    Description: Budgeting in your life after Missouri or Illinois bankruptcy is essential. So, what are the big rules to follow when trying to manage your money?
  • Why Bankruptcy is not the End of the World | Wentzville Missouri Bankruptcy Attorney   
    Description: To many, Missouri and Illinois bankruptcy seems like the end of the world. However, those very people would be surprised to know how Missouri and Illinois bankruptcy may only be the beginning to your new life.
  • What Possible Effects Will Bankruptcy Have On My Children?   
    Description: When considering the option of bankruptcy, many families are especially concerned with how the decision to file for bankruptcy in Illinois or Missouri will effect their children and their children's future financial plan. Learn about how bankruptcy could have an effect on your children.
  • Getting a Job after Bankruptcy: How to Explain Your Bankruptcy to Your Employer   
    Description: Getting a job after bankruptcy is the first step in making your fresh start all it can be. But, what if you need to explain your Missouri or Illinois bankruptcy to your boss? Here are a few secrets that can help you conversation go as smoothly as possible.
  • Missouri and Illinois Bankruptcy and Your Future: Cash, Careers, and Kids   
    Description: Bankruptcy may affect future employment, your credit report, and your family--but it may have a positive effect that you weren't expecting.
  • Hear about Life after Chapter 7 or Chapter 13 Bankruptcy in St. Louis, Missouri Straight from Those Who Know!   
    Description: What is life after Chapter 7 and Chapter 13 bankruptcy in St. Louis Missouri really like? Here are some opinions of people who have been through bankruptcy and are now leading the successful lives they've always wanted!
  • Is It Hard to Open a Bank Account after Chapter 7 or Chapter 13 Bankruptcy in Missouri and Illinois?   
    Description: You can start rebuilding your credit right after a chapter 7 or chapter 13 bankruptcy in Missouri and Illinois by opening a bank account. However, there are some secrets and tips to choosing the right account and bank that will help you have a more successful post-bankruptcy life.
  • The Secrets to Surviving the Hard Times   
    Description: Everyone could benefit from a secret or two to surviving an economy like this. The recession in St. Louis Missouri and Illinois along with the rest of the United States has hit us all. Missouri bankruptcy attorney James Brown has some tips to offer that could just be the information you need to survive the hard times.
  • Simplifying Your Wallet   
    Description: It is often hard to learn how to spend money again without getting back into debt after you've been through bankruptcy. There are certain tricks that you can use to simplify your spending and make it easier to keep out of debt.
  • Renting After Bankruptcy   
    Description: Renting an apartment or house after a filing a chapter 7 or chapter 13 bankruptcy in Missouri is usually not a problem. Since bankruptcy is one of the most responsible things you can do, it usually proves to landlords that you can be responsible enough to pay your rent.
  • Is Bankruptcy A Fresh Start? | Missouri Bankruptcy Lawyer   
    Description: Will declaring bankruptcy lift the weight of debt off of your shoulders? The answer might be more complex than you think. Although bankruptcy may be the right choice for you, it is still a serious decision - and life after bankruptcy means working hard to rebuild your credit and fix your finances.
  • How Long Will Bankruptcy Stay On Your Credit Record? | St. Louis Bankruptcy Attorney   
    Description: Will your bankruptcy follow you forever? No. Although it will appear on your credit report for seven to ten years, you can start to rebuild your credit immediately after declaring bankruptcy. Learn more about how bankruptcy affects your credit report and what you can do to minimize any long-term credit damage in the wake of a bankruptcy.

    • View All

Frequent Questions for Life After Bankruptcy:

Web Resources for Life After Bankruptcy:

  • AnnualCreditReport.com

    Description: Site set up by U.S. Government as a resource to obtain one free credit report on an annual basis.

  • Equifax

    Description: One of three credit bureaus where you can obtain your credit rating and monitor your report

  • Transunion

    Description: One of three credit bureaus where you can get a copy of your credit report and monitor your rating

  • Experian Credit Reports

    Description: One of three credit reporting bureaus where you can obtain a copy of your credit rating

    • View All

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