HOW TO REBUILD your credit

Every individual that has filed for bankruptcy has the ability to restore his or her credit. Indeed, with the amount of credit available to consumers, it is not at all difficult to rebuild your credit, obtain financing on a car, and/or mortgage loans.

Below are some helpful tips in restoring your credit and establishing that fresh start.

    Maintain a bank savings or checking account. A debit card is a first step toward showing that you can manage your finances. Obtain a secured card, which requires a cash deposit. Attempt to payoff any outstanding charges or cash balances each month to show a positive payment history.

    Make sure you pay all your rent and utility bills on time.

    Do not take out payday loans or any other short-term loans that have a high interest rate and risk a large default.

    Ask a friend or family member to assist you and cosign a debt. Then, make sure you repay the debt on time.

    You should also live within your income and means. Do not buy any goods that you know will be difficult to pay over time.

These are some of the factors that may help you after a bankruptcy discharge. Of course, unforeseen circumstances could lead to a situation where once again you face some debt.

Feel free to call out office to discuss any post-discharge circumstances that you encounter. At Staver & Gainsberg, we strive to help our clients before, during, and after they file for Bankruptcy.

Disclaimer: The information provided pertains to Chapter 7 and Chapter 13 consumer bankruptcy as it relates to this practice in Illinois. Bankruptcy law is generally federal law. Laws in Illinois are going to be similar (but not exactly the same) to laws anywhere in the country. However, this information only applies to Chapter 7 and Chapter 13 consumer debt and no other type of bankruptcy. Additionally, this information is not intended as a legal opinion or legal advice at all. The facts of every case are different and give rise to issues that may not even be discussed here. You are urged to consult an attorney who is licensed to practice in your area before you take any action.