The People’s Lawyer

Will filing for bankruptcy ruin your credit forever?

On Behalf of | Nov 3, 2021 | Uncategorized

Many people in Charles Town are hard workers not afraid to put in the daily grind to get the job done. For this reason, when your debts become so great that you simply have no way to pay them back you may feel like you are out of options. You are not. Filing for bankruptcy is a good way to crawl out of debt and move forward on fresh financial footing. And filing for bankruptcy will not ruin your credit forever. There are ways to rebuild your credit following bankruptcy.

Watch your credit score

One step to take is to keep an eye on your credit score. If you filed for Chapter 13 bankruptcy, this will be taken off your credit report after seven years. If you filed for Chapter 7 bankruptcy, this will be taken off your credit report in 10 years. Your credit score will likely drop, but you can use a variety of free online services to check your credit score monthly so you can note improvements and identify mistakes.

Be a responsible borrower

Another step to take is to simply be a responsible borrower. Make sure your bills are paid in full and on time. Try not to overuse credit cards — avoid them altogether if possible. If you do have credit balances, keep them low. Save as much as you can for emergencies. And be patient. Rebuilding credit can take time.

Consider a secured credit card

A third step to take is to get a secured credit card. While credit cards in general should be used sparingly post-bankruptcy, secured credit cards can be used strategically to improve your trustworthiness. When reported to credit bureaus, the responsible use of a secured credit card can show you are a responsible creditor.

Filing for bankruptcy may seem like a last-ditch effort but it is actually a very responsible way to address overwhelming debt. It does not mean your finances will be ruined forever. There are ways to rebuild credit following bankruptcy so you can move into the future on a clean financial slate.