One of the biggest concerns in contemplating the filing of a Chapter 7 bankruptcy is how to go about reestablishing credit after the discharge is (hopefully) received and the bankruptcy case closed. Of particular importance is that the debtor regain the ability to qualify for a car loan and, ultimately, that he or she might in the not too distant future qualify for a mortgage loan. Here are some relatively simple steps to help achieve those goals:
1. Start small, but steady: As soon as your case is closed, apply for a credit card with a very low spending limit. Even if that limit is as modest as, say, $250, this fact is much less important than the fact that you must stay completely current on the account. Meaning that you should not merely make the minimum payment every month; rather, you should pay the entire account balance in full, and well before the due date. This will help you establish with the credit reporting agencies a track record of repaying debts reliably and on time. Continue reading ‘Recovering From Bankruptcy – It’s Easier Than You Think’ »