Life After Bankruptcy: Cleaning Up Your Credit Reports, Part 4

Life After Bankruptcy: Cleaning Up Your Credit Reports, Part 4

This blog is a continuation of a series of articles on former bankruptcy debtors repairing, correcting, and verifying the information contained on their credit report after a bankruptcy case is filed. Debtors who utilize the discipline, patience, and advice in these articles, may, over time, rebuild credit and return to a normal financial life.

The Morrison Law Group strives to give clients a fresh start through bankruptcy. We assist clients through a pending bankruptcy case, but also assist them after they receive their discharge order, and their bankruptcy case officially closes. We will review credit reports and dispute any negative or inaccurate credit reporting.

The Morrison Law Group possesses the experience necessary to sue creditors that engage in illegal conduct and violate federal and state law. We have helped  8,000 Utah families and individuals file bankruptcy and gain fresh starts for the last fifteen years. If any creditor fails to comply with a discharge order, we will sue them at no out-of-pocket cost to our clients.

Obtain New Credit

One of the most important goals of a debtor, especially one who is nearing the completion of a bankruptcy case, is securing new credit. Obviously, this is one of the most significant obstacles in repairing credit post-bankruptcy. It is critical to the process of reestablishing credit.

I remember an attorney’s reply whenever someone complained about difficulty obtaining credit: “File bankruptcy!” Then, he would explain that the expedient removal of debt through bankruptcy makes former debtors attractive to banks and credit card companies. After all, repaying debt is a lot easier when there is none preexisting. Also, some lenders approve applicants with a bankruptcy on their credit report because they know that they cannot legally file bankruptcy again for seven more years.

It may be useful that most retail and gas credit cards tend to have lower qualification standards than other unsecured credit cards.

If a former debtor has problems obtaining traditional forms of unsecured credit, an option is a secured credit card or loan. Although these types of credit require a security deposit, lenders will often convert this loan to an unsecured status after timely payments are made, usually for at least a year.

Of course, these loans carry higher interest rates and restrictions than cards available to those without a bankruptcy on their credit report. Nonetheless, these forms of credit provide initial avenues to reestablishing credit. A key is to make regular, inexpensive purchases, not to overspend, and timely pay the full balance every month.

Theron Morrison cares about protecting your rights before and after a bankruptcy case. Talk to the Morrison Law Group about your Chapter 7 or Chapter 13 bankruptcy options. Call 801.456.9933 today to schedule a FREE consultation. We have locations in Ogden, Logan, Sandy, and St. George to serve the residents of the counties of Weber, Cache, Salt Lake, Utah, Morgan, Davis, Washington, and surrounding areas.

Life After Bankruptcy: Cleaning Up Your Credit Reports, Part 4

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