Filing for bankruptcy can be an overwhelming and scary process—especially when it affects your ability to own a home or secure a loan in the future. However, filing for a bankruptcy doesn’t mean that you won’t be able to rebuild your financial profile eventually. In fact, you can rebuild your credit report starting today—here is how.
Develop Good Financial Habits
Before you start thinking about rebuilding your credit report, you need to make sure your financial habits are on track. The last thing you want is to continue to have financial hardships—this is why practicing good budgeting skills can help you manage your money successfully. For example, you can start by creating a budget and tracking your spending in one of dozens of powerful and affordable money management apps. You Need a Budget, Mint, and EveryDollarare some of the most popular budgeting apps on the market.
Find an Inaccuracy on Your Credit Report
If you believe that the information in your bankruptcy file is even slightly inaccurate, you have the right to make changes. You can do this by filing a dispute with the three credit bureaus. This requires you to submit proper documents to receive approval. This may lead them to remove the bankruptcy from your credit report.
Pay Off Your Debts as Quickly as Possible
Developing good financial habits is the surest step toward wiping a bankruptcy off your credit score. If you file for Chapter 13 bankruptcy, you can develop a plan to repay some or all debts over the course of 3 to 5 years. The bankruptcy itself will be deleted from your report no less than seven years from its filing date. However, there is a maximum amount of time a bankruptcy can remain on your report, but there is no minimum amount of time—in other words, you could get a bankruptcy removed before the 7 years are up (or 10 years, if you've filed for a Chapter 7 bankruptcy).
Contact A Bankruptcy Attorney: (817) 576-1889
Filing for bankruptcy can be confusing, especially when it affects other areas like your credit report. For such reasons, it is helpful to contact a bankruptcy attorney who can help you with the filing process and answer all your questions. Huebner Law Firm has helped hundreds of families recover from their difficult financial situations. Contact us today!