One of the main concerns people have when filing bankruptcy is how to go about restoring their credit once their debts have been discharged. While bankruptcy will remain on a person's credit report for up to 10 years, it is usually the delinquencies and late payments that caused the most damage. Foreclosures, liens and repossessions can also dramatically affect your credit. Bankruptcy effectively puts an end to the downward spiral. Even before you receive your discharge, there are actions you can take to restore your credit. Follow these steps to restore credit after bankruptcy:
- Obtain a copy of your credit report so you can review it and submit a request to the appropriate credit reporting agency to have any discrepancies removed.
- Do a budget. Proper budgeting can help you avoid falling back into debt and prevent you from spending more than you make.
- Apply for a new credit card. Even a secured credit card can help reestablish your credit and show creditors you are capable of fulfilling your financial obligations.
- Only charge small items which can be paid off in a timely fashion each month.
- Pay your bills on time.
- Dispute any wrongful charges.
- Work out how to set aside money every week or month to build up your savings.
Most people are likely see their credit scores begin to improve within a few short months. If you need help with bankruptcy, or restoring your credit after bankruptcy, a lawyer from their firm stands ready to assist. The lawyers at Worsham Law Firm are steadfast advocates for debtor rights. They understand the various ways your life can be impacted by your credit score. Helping you regain control of your finances and receive the fresh financial start you deserve is their ultimate goal. Speak with a Springfield lawyer now!