How Bankruptcy Affects A Credit Report

After a bankruptcy discharge from the court, the debt discharged will no longer exist and a debtor gets to keep any cash or assets acquired after discharge.  A creditor will not be able to go after a debtor for the discharged debt.

A debtor can get back in financial shape by controlling impulses to overspend, or other bad money habits such as gambling. Learn from the required financial classes taken during the bankruptcy process to save money to become independent of credit.

To stay out of debt, find out the expenses each month. Note every dollar spent throughout the week such as $5.45 for the Panini sandwich, the $3.00 for the coffee, or the $2.00 for the newspaper. Identify unnecessary items that could have been bought at a lower price, such as bargaining on the meat at the end of the day at the grocery store.

With a budget, a person can rebuild credit in no time.  Bankruptcy will not affect a person for life. Most creditors will lend to someone when the person shows steady employment after bankruptcy and ability to pay bills on time.

People may be shocked when they receive credit card offers after filing bankruptcy. They are sought after customers since they are not able to file bankruptcy for another several years.  It makes sense to apply for credit after bankruptcy to rebuild a credit history for when a person needs a loan for a home, car, or other significant asset.  Pay on time to create positive entries for the credit report, and to decrease interest expenses.

To rebuild credit make sure the information in the credit report is correct. Get a free credit report annually from:

•             TransUnion, Consumer Disclosure Center, P. O. Box 2000, Chester , PA 19022, www.transunion.com

•             Equifax, P. O. Box 740241, Atlanta, GA 30374, www.equifax.com

•             Experian, P. O. Box 2104, Allen, TX 75013, www.experian.com

A person gets a higher credit score when the person has few creditors and keeps the same creditors for a long time.  For example, a person uses the same credit cards for a long time, and has few credit cards.  Negative information can be kept in a credit report for as long as seven years. Challenge errors and outdated entries on a credit report.

To learn how bankruptcy affects your ability to get credit, speak with an experienced New York bankruptcy attorney who has helped hundreds of hard working New Yorkers to a fresh start. Don’t let worries about the credit report get in the way of a debt free future. Filing for bankruptcy can make life easier.