Indianapolis Consumer Debt Counseling Lawyers

30 Years of Advice on Rebuilding Credit After Personal Bankruptcy

Any honest bankruptcy attorney or consumer debt counseling

Any honest bankruptcy attorney or consumer debt counseling agency will tell you that bankruptcy does have its downsides. The effect on your credit rating is one of the negative consequences of bankruptcy. That said, the drop in your credit rating will be temporary and it may actually rise again earlier than it would have if you had not filed bankruptcy.

At the consumer debt counseling and bankruptcy law firm of Redman Ludwig, P.C., in Indianapolis, many of our clients have mixed feelings about the effect bankruptcy has on credit ratings. On one hand, most of our clients are well aware that too-easy access to credit can get them into serious financial trouble, and they may be glad of a temporarily low credit score that limits their access to credit. On the other hand, modern day economic realties dictate that for some things - getting a car, buying a house, or purchasing plane tickets, to name a few - you simply have to have access to credit. As any consumer debt counseling agency will tell you, you can rebuild your credit after bankruptcy in order to have access to enough credit to secure important purchases.

What Happens to Your Credit Rating After Bankruptcy

When you file bankruptcy, we will run your credit reports from the three main reporting agencies and discharge all debts listed. All debts will be listed with a "BK" for bankruptcy, whether you are in Chapter 7 or Chapter 13. The BK will remain on your credit report for 10 years after a Chapter 7 bankruptcy and for seven years after a Chapter 13 bankruptcy.

About one year after bankruptcy, you will probably qualify for a car loan and even a home loan, although the terms may not be as favorable as your last loan. You should be able to find a rental home in the meantime, although some landlords will refuse to rent to individuals who have been through bankruptcy. Student loan companies may not discriminate on the basis of bankruptcy or poor credit, so you should still be able to borrow money to go to school. Be very careful with any new loans, however, because you will not be able to file another Chapter 7 bankruptcy for eight years.

Rebuild Your Credit Carefully After Bankruptcy

At Redman Ludwig, P.C., our consumer debt counseling and bankruptcy attorneys have been helping clients in Central Indiana deal with bankruptcy and credit issues for more 30 years. As a result, we can provide you with the guidance you need to reestablish and manage your credit successfully. Steps to consider taking after your bankruptcy is complete include:

• Ask someone you trust to have you named as a co-maker on his or her credit card. This is an excellent way to start rebuilding credit immediately while not actually affecting your finances. Make no charges on the card.
• Save a reasonable amount of money each week.
• In six months or so, use your accumulated savings to open a secured credit card in your own name. Charge a small amount each month and pay the full amount back in the same month. If you prefer not to have access to credit, keep your savings in a bank account for emergency use only.
• Monitor your credit rating with the three major credit reporting bureaus: TransUnion, Experian, and Equifax. You are entitled to receive one free credit report each year from each of these credit reporting agencies. Use that right. Challenge any inaccurate debts as soon as they appear.
• Pay bills on time. If you are in a Chapter 13 bankruptcy, continue making regular payments to your bankruptcy trustee. Pay all bills and utilities on time. If you anticipate financial problems that could cause you to miss or underpay a payment, alert your bankruptcy trustee or your creditor as soon as possible in advance.

Central Indiana Bankruptcy Solutions - Toll Free (866) 793-5226

Receive consumer debt counseling from a reputable law firm established in Central Indiana for 30 years. For answers to your questions about rebuilding credit after bankruptcy, call our personal bankruptcy lawyers in Indianapolis directly at (317) 685-2426, toll free at (866) 793-5226, or reach us online Link to Contact Us by completing the brief form located on the Contact Us page of this Web site. We offer reasonable payment plans and will deduct initial consultation costs from your fee should you decide to retain us.

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