Starting Over After Bankruptcy

People often ask how the filing of a bankruptcy will impact their credit rating and their ability to borrow in the future. In Most cases, people seeking to file bankruptcy already have damaged their credit rating or have simply maintained a good standing with their creditors by using one credit card to pay another. This practice usually serves little more than a delay tactic, creating a larger financial problem down the road. Although the filing of a bankruptcy will be reflected on your credit report, it is possible to re-establish your credit in the future.

Most people can re-establish credit after bankruptcy by maintaining stable employment and by promptly making payments for their accounts they are left with such as car payments, rent, insurance, and utility payments. Additionally federal law forbids discrimination against people who have filed bankruptcy.

Subsequent to filing your bankruptcy it will be important to check your credit report to make certain your old debt is reflected as being discharged and you are getting proper credit from your current good deeds. Credit reporting agencies are required to provide a free copy of your credit report if you are denied credit. Some credit bureaus will provide a free copy of your report once a year. Please be certain to ask your attorney how to obtain your credit report and the best way to re-establish your credit rating.