Rebuild Your Credit with the First Step of Bankruptcy
If you are considering filing for bankruptcy in Utah chances are you are behind in payments to creditors and this has likely taken a toll on your credit report. Filing for bankruptcy likely will be the first step in the process of rebuilding your credit.
A Chapter 7 bankruptcy will stay on your credit for about 10 years and a Chapter 13 bankruptcy will stay on your credit for about 7 years. That does not mean, however, that you cannot begin building your credit immediately after your discharge.
Call (801.413.1753 or toll free 888.337.3235) the Salt Lake City bankruptcy attorneys at Salcido Law Firm to talk to an experienced Utah Bankruptcy Attorney about your options. We will help you understand about the bankruptcy process and what you can expect upon being discharged from bankruptcy.
Steps to Rebuilding Your Credit
One of the easiest ways to rebuild your credit is to get one credit card, use it only for the minimum purchases possible, and pay it off every month. After bankruptcy you may need to get a secured credit card. When a credit card issuer sees your credit report and sees that you recently filed for bankruptcy it will want to protect itself and will require some kind of security. That will be no problem for you assuming you use the card infrequently and pay it off every month.
After paying off your secured credit card every month for one to two years you will likely again become eligible to get a non-secured credit card. Apply to one non-secured credit card and pay that off every month like you did with the secured credit card. With this approach you can see your credit score return to “good” within just a matter of two or three years from your bankruptcy discharge.
If after bankruptcy you are left with any other debt – such as when you file a Chapter 13 bankruptcy and you continue to make payments on your home and cars – make sure you comply with your payment plan. Creditors will see that you made timely payments over the three to five years of your payment plan and that will build your credit in their eyes.
Minimize your debt. Take debt only if necessary and only with the ability to pay it back when called for. Paying even little debts like credit cards will go a long way in helping you to rebuild your credit.
Call Us, We Can Help
The Utah bankruptcy attorneys of Salcido Law Firm can help you understand the bankruptcy procedure and its consequences. Give us a call at 801.413.1753 or toll free at 888.337.3235 or email us and learn for yourself how you can Get Protected! and start rebuilding your credit today.