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Rebuilding credit score after Chapter 7 bankruptcy

Perhaps one of the most common fears surrounding the decision to file for bankruptcy is that the Kentucky resident will never be able to get credit again. Yet, this fear has limited basis in reality. In fact, within a very short time period after filing for Chapter 7 bankruptcy, most individuals are able to begin rebuilding their credit portfolio.

Once debts have been discharged in bankruptcy, it is time to start rebuilding credit. The first step is to apply for a secured credit card. Ideally, this card should require a deposit ranging from $50 to $200. Additionally, there are offers available that do not require monthly or annual fees.

Once the account is established, the individual will want to make limited purchases on the card each month. The goal is to show activity on the account while keeping the available credit ratio high. Furthermore, it is important to pay the card off each month by the due date. After a year or so of on-time payments, the individual may be able to change the status of the account to one that is unsecured and does not require a deposit.

The idea of going back to credit cards when they may have been part of the problem to begin with is that the individual may need credit in the future. By showing that the individual has resolved his or her financial problems and is now able to budget, future loans for purchases such as a car or home are possible. An experienced bankruptcy attorney can walk the Kentucky resident through the process of filing for Chapter 7 bankruptcy and steps to recover credit-wise once the process is complete.

Source:, "Credit Cards After Bankruptcy", Jordan Wathen, Oct. 9, 2017

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Law Office of Ginger C. Cord, PSC
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Lexington, KY 40507

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