Filing bankruptcy ruins your credit, or so they say.
I have filed a third Chapter 7 for at least three individuals, so, you know, people can get credit again.
But, by the time you contact a lawyer, that good credit rating is in the rear view mirror, or about to be.
People don’t email or call me because they can pay their bills.
They may be current, because they just got the layoff notice, or, in the old days, ran out of new credit cards to get cash advances to make the minimum payments.
So, let’s be clear, it is not bankruptcy that wrecks your credit, it is, not paying your bills.
If you do not file bankruptcy, you still will not have the money to pay your bills, and will still have a bad credit score.
A good credit score comes from paying your bills on time. Period.
Do not pay the scam companies with the magic formulas, the ones who say they can get that bankruptcy off your credit report earlier than the ten year maximum allowed by current law.
But, people say, how do I get a bill to pay off on time to restore my credit after bankruptcy?
Hey, are there utilities still in your name?
Did you keep paying on a mortgage or car or other vehicle?
Even if you did not reaffirm a debt, you have the right to include, to add, information to your credit report.
Maybe you are renting.
That is another debt you are repaying.
Of course, you pay higher interest for credit after filing bankruptcy.
But, again, you would probably not even get a loan if you had not filed bankruptcy.
Creditors are not standing in line to lend to someone who cannot pay the bills she already has.
But, you are a better credit risk after wiping out a bunch of debt than before, and the creditors know you cannot get another Chapter 7 discharge for 8 years.
You can get a high fee, high interest rate secured credit card.
This is where you deposit X dollars at the bank, and the bank gives you a Visa or MasterCard secured by the X dollars in your account, which you usually cannot use.
I am not recommending this, just pointing out, one way to get credit.
So, this is reality, no shortcuts, it takes a while, but it is done all the time.
How Do I Rebuild My Credit After Bankruptcy?