Thomas F. Miles, Attorney and Counselor at Law
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Mythbusting: Can your credit be repaired after bankruptcy?

If you are drowning in overwhelming debt and dealing with harassing calls from creditors, bankruptcy may be a valuable option to give you a fresh financial start. Debt is not always about being irresponsible. You cannot control when you lose your job, when you get sick or injured enough to collect high medical bills or when the cost of living rises more than you expect.

Many avoid filing for bankruptcy because they fear how it will affect their credit, and believe the myth that credit can never be restored after filing. To dispel those fears, here are a few ways you can repair your credit after bankruptcy.

Focus on loans that fit your situation

Your record before bankruptcy may make you appear risky to lenders, but you can overcome that problem by improving your financial profile with either a secured loan, a secured credit card, a co-signed credit card or loan and an authorized user status on an existing credit card. As you make payments, you show creditors that you are a good financial bet.

Review your credit

To ensure that your spending and debt does not get out of control before you can get a handle on it, you should monitor your credit report as often as possible. Watch closely for any errors or inaccurate information.

Build a savings account

If you are starting fresh with no debt, do your best to build up a solid savings account. This will help you avoid relying on credit cards in the future and will also show lenders that you are financially responsible. A bankruptcy filing can stay on your credit report for up to ten years, but the more steps you to take to repair it, the less it will hurt your future.

Speak to a professional

If you are tired of feeling smothered by debt and want to get a fresh start on your life, bankruptcy might be a good option for you. Before making any decisions, however, speak to an attorney with finance experience.

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Thomas F. Miles, Attorney and Counselor at Law
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El Cajon, CA 92020

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