Chapter,Bankruptcy,Rebuilding, law Chapter 7 Bankruptcy - Rebuilding Your Credit
Bankruptcy is a situation, wherein an individual is termed as unable to discharge all the debts. When a person or a company is not able to pay off its creditors, it has an obligation to file a bankruptcy suit. In fact, a bankruptcy suit is a When you work with an attorney, you will have no problem reducing the risks associated with getting your case in front of a judge and jury, or other formal court, when you need to. However, every case is different. It is important to work wi
There are many things that can show up on your credit report that will disqualify you from getting a loan. A Chapter 7 bankruptcy is among those things, and is perhaps one of the most significant. That's not to say you shouldn't file if you need to, but you should be aware of the consequences that accompany the decision. Thankfully, the law states that such a filing can remain on your credit report for no longer than seven years. At the end of that period, however, you will have a largely blank credit report, which will not work in your favor with potential lenders. The interim period should be used to rebuild your credit. Here's how to do so.Your ReportYou can get a free copy of your credit report once a year from each of the three primary bureaus. It's worth looking at all three, as they do not always match perfectly. Read through these reports carefully to make sure all of your accounts included in your Chapter 7 bankruptcy were properly discharged. The last thing you need is to have both the filing and delinquent accounts on your report. If there are active accounts still on the report, contact the bureau and ask them to remove the incorrect information. Talk to Your BankYour own bank is always a great place to start when it comes to rebuilding a solid credit history. While you may not qualify for a traditional credit card, you can apply for a secured card. A secured card is backed by your own checking or savings account. While it makes little sense for someone with great credit to apply for one of these cards, they do serve a fine purpose when it comes to establishing credit. Use the card, make the payments in a timely fashion, and your responsibility will be reflected in your credit report. Keep Your JobIf possible, stay in your job. While this doesn't mean you should turn down major opportunities to enhance your income, you shouldn't switch jobs because you're bored. Lenders look at employment stability as a major factor when determining the viability of a potential customer. They may also look at your residential status, so try and stay in the same home as well.PiggybackingIf you have a father or an aunt with a great credit history, you might consider asking them if they will add your name to one of their credit card accounts. If they are concerned about your Chapter 7 bankruptcy and possible financial irresponsibility, you can assure them that you will never use the account. The point is simply to benefit from their credit history, which will be reported as part of yours. Article Tags: Credit Report, Credit History
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