Credit after Chapter 13 Bankruptcy


The law does not prevent anyone from getting credit soon after a bankruptcy. The Bankruptcy Code and the Fair Credit Reporting Act is brought under the federal law; and therefore, is uniform to all states. Whenever a debtor files for bankruptcy, the consumer credit report will typically hold the details of the same for ten years from the date of the commencement of the proceedings irrespective of whether it was under Chapter 7 or Chapter 13 bankruptcy.

One can become eligible for credit provided he makes a conscious effort from his side to understand and evaluate the various aspects controlling them. Even though you have been termed as “bankrupt” your credit score starts to bounce back from the moment your case gets closed. A debtor can push back his credit score by channeling his efforts in paying the bills on time and by sticking to the utilization of a small amount of the credit made available to him. For an individual who had filed for bankruptcy under Chapter 13, it is always wiser to manage his expenses on cash basis if he is unable to effectively manage his credit.

Quite often people have noticed a poorer credit rating on account of the error reflected in the report by the credit reporting agency. So, develop the habit of deeply scrutinizing these reports for errors and informing the agency of the same for rectification. One typical example is the mirroring of a debt as open and outstanding when it has been discharged under bankruptcy. In the wake of such a slip-up, contact the credit agency and bring in the modification to push back your credit after bankruptcy.

Going for a secured credit card, the limit of which is subjected to the amount deposited by you, is a great way to bring yourself well within the budget. At the same time, keep track of the movements of the credit card agency in informing the credit reporting agency of your timely payments to push your credit rating to better levels.

In short, one can say that it is the capacity to make the payments and the credit history mirrored after the bankruptcy that defines the road taken by your credit rating.






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