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Credit Repair After Bankruptcy

Credit Repair After Bankruptcy

Filing for bankruptcy is a double-edged sword. While you may be free from your debt or on a payment plan that you can afford, your credit is going to take a nosedive. Depending on your credit situation before bankruptcy, your credit score could plummet by hundreds of points. How do you go about repairing your credit after you have filed for bankruptcy?

Find a Partner to Help You

You don’t have to deal with the process of repairing your credit on your own. There are many qualified individuals or credit repair firms that can help you get your credit score back to where you want it. You can talk to an attorney about where to go for help or go online to learn about where you can turn for credit repair help and guidance. Nonprofit organizations may be willing to help you for free or for a reduced fee based on your income.

Nonprofit Does Not Mean Free

It is critical to remember that nonprofit does not mean that the organization does not make a profit. In some cases, a nonprofit credit counseling service may charge more for their services than a for-profit agency. Those who are looking for free or low cost credit repair services should look for agencies that are affiliated with churches or other social welfare groups.

Repairing Your Credit Takes Time

Whether you have help or decide to repair your credit on your own, it will take time to repair all of the damage that occurs when filing for bankruptcy. A Chapter 7 bankruptcy will stay on your credit report for up to 10 years while a Chapter 13 bankruptcy will stay on your credit report for seven years.

The good news is that most lenders will overlook your bankruptcy after as little as one year as long as you demonstrate good financial habits after you file. At first, you may want to look at secured credit cards and title loans if you want to establish your credit quickly.

If a credit repair agency offers to give you a new credit report or to eliminate items on your current report, run away as fast as you can. This is a scam that involves stealing someone else’s credit report. In most cases, scammers steal the identity of children and try to pass the new credit profile off as your own.

There is a lot that you have to think about when attempting to repair your credit after bankruptcy. The best thing to do is to consult with your attorney to find reputable credit repair agencies that can help you get back on your feet. If you are unsure as to whether or not a credit repair company is legitimate, you can talk to the Better Business Bureau (BBB) or other community watchdog groups to get the answers that you need.

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