Thomas F. Miles, Attorney and Counselor at Law
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Is credit repair possible after personal bankruptcy?

Once a California resident has made the decision to file for bankruptcy, a mix of relief and concern often follows. Consumers are relieved in the knowledge that their debt problems are going to be eased once the process is complete. However, many are also worried about the impact that personal bankruptcy will have on their credit scores. It is important to understand that, while bankruptcy will have an impact on credit scoring, it is possible to rebuild credit in a relatively short period of time.

For those who file for Chapter 7 bankruptcy, that fact will remain on one's credit report for a period of 10 years following discharge. Individuals who file for Chapter 13 will find that the matter remains on file for seven years. Regardless of which type of bankruptcy protection is sought, consumers should know that it is possible to rebuild credit in the months and years following bankruptcy, even before the filing drops off of one's credit report.

One of the best ways to rebuild credit after bankruptcy is through the judicious and responsible use of secured credit cards. These cards are offered to virtually anyone, as the available credit limit is tied directly to a deposit placed in the account by the borrower. By making purchases with these cards and then paying off the balance in a timely manner, it is possible to quickly re-establish a solid credit rating. This is a process that takes less time than many assume.

For those in California who are concerned about how their credit score will be affected by personal bankruptcy, it is important to understand that the initial decline in scoring can be a temporary outcome. Given the right blend of effort and care, it is possible to boost one's score to levels that reach or exceed those in place prior to filing. Bankruptcy offers a fresh start and gives individuals a chance to rebuild their financial foundation as they see fit. Of all the outcomes of the bankruptcy process, this is the one that is the most powerful.

Source:, "How to Rebuild Credit After Bankruptcy", Erin El Issa, Dec. 17, 2014

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Thomas F. Miles, Attorney and Counselor at Law
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