Law Office of Judith A. Descalso Law Office of Judith A. Descalso

Rebuilding credit after filing for bankruptcy

Our Escondido readers who are familiar with previous posts on this blog may know that filing for bankruptcy is not the financial "bombshell" that many people make it out to be. In fact, these laws are intended to help consumers face their financial challenges, get out from under the burden of overwhelming debt and move forward in life free from creditor harassment.

However, it is after the bankruptcy process is complete that yet another challenge must be faced: rebuilding credit. There is no doubt that for most people who file for bankruptcy the process is a low point in their credit worthiness, but with the right approach a person's credit standing can be rebuilt, even to the point where the person may be eligible for loans or mortgages again in the future.

The key to rebuilding credit is to avoid falling back into situations that may have led to the bankruptcy filing to begin with. Credit card debt is the source of many bankruptcy filings, so people who go through the process will want to be sure that they only apply for new credit cards if they are needed, and if the credit cards are going to be used in a way that will allow for a gradual increase in a person's credit score. This can be accomplished by paying monthly bills on time and keeping balances low.

But, perhaps the really crucial aspect of rebuilding credit after a bankruptcy filing is this: be patient. Rebuilding credit doesn't happen overnight -- it will take time. But with the right effort it can be done.

Source: Experian.com, "Improve Your Credit Score," Accessed Feb. 6, 2016

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