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Is rebuilding good credit following bankruptcy impossible?

| Jan 16, 2015 | Chapter 7 Bankruptcy

Although people who have filed for and gone through the process of bankruptcy do indeed take some losses, most of them carry on in their post-bankruptcy life by doing what other people who have faced hard circumstances do: They move on. They pick up the pieces, rebuild and forge brighter futures.

As a practice page on our website at Kingcade & Garcia entitled “Rebuilding After Bankruptcy” notes, “Most people think declaring bankruptcy means long-term financial ruin.”

That is flatly erroneous thinking and a clear misconception regarding the bankruptcy process and what is possible for most debtors following a bankruptcy filing.

Although bankruptcy is certainly not a game, there is nonetheless a blueprint associated with it that will reward filers who follow certain guidelines and recommendations after they formally invoke the process.

In other words, there is a game plan for restoring solvency, and it routinely works for millions of people. All that it requires is some sustained effort and a bit of consistency in application.

Here’s a core aspect of that blueprint: Be smart with that low-balance credit card you’re likely to be offered following bankruptcy. Small purchases and regular payments on that card will assuredly result in a steadily improving credit score. Over time, that in turn results in higher credit limits and more attractive purchasing options for many people.

And here’s another simple tip for rebuilding credit: Stay timely on rental or home payments.

There are many sound ideas that, when acted on by a bankruptcy filer, can help to steadily rebuild credit scores and limits. An experienced debt-relief attorney can discuss them with a client and help him or her get on a solid track toward financial freedom after bankruptcy.