Repairing Your Credit

Following a bankruptcy, debtors wonder if they will ever regain their balance. No matter how bad it seems, with good financial planning you will be able to again be financially secure. You can expect your credit rating to be affected after you file for bankruptcy, but there are some steps you can take to help re-establish your credit.

With the federal law in place for Fair Credit Reporting Act and the Bankruptcy Code, the details of your bankruptcy will appear in your credit report consistently in all states. Bankruptcy will be stored in your consumer credit report for 10 years. The bottom line is that you can establish good credit by paying your bills on time and prove you can manage your money over an 18-month period. Unfortunately, this will be even harder if you have filed for bankruptcy. But don’t dismay, it is possible to obtain favorable credit ratings again.

One of the most important steps to repairing your bankruptcy is to obtain a job; even if it is just part-time. Showing a stable work record is key. Next you should obtain a copy of your credit report from the 3 credit bureaus. Verify that all information is accurate and send them a one-hundred word statement that can explain your situation.

As quickly as you clear up your credit card debt, you must get rid of any extra credit crads. You should only have 1-2 essential cards. This shows you are planning to handle your credit more carefully in the future. If you are unable to obtain a credit card you may want to apply for a secure credit card.

Another sensible step to take is to open and make regular deposits to a savings account. It is critical to pay all your bills on time to prevent a huge debt. Maintaining a checking account with a positive balance also shows you can responsibly handle your finances.

Obtaining a loan from your bank or credit union can also be beneficial. Make all your payments on time or early if possible. Be sure to confirm that the organization reports the transactions to the credit bureau as not every organization does this.

Some of the best advice we can offer is to keep open communication with your creditors. It will not help to avoid them. They might be able to assist you. You should then prioritize your bills. Necessary items such as rent, groceries, and utilities should be first on your list.

Depending on your financial circumstances, filing for bankruptcy before starting a legal divorce proceeding can be beneficial. Filing for bankruptcy can help clear some of your debt and make it easier to negotiate or divide the remaining debt. This can also protect you from your ex-spouse filing bankruptcy down the road.

You may also want to consider filing a joint bankruptcy instead of two separate ones. A joint bankruptcy is much cheaper and can eliminate the separate debts of you and your spouse and all the jointly held marital debts.

When you file for bankruptcy, all the property that was acquired during the marriage becomes part of the bankruptcy estate and is available to pay off debts. You can file for an “automatic stay” that can prevent creditors from collecting on most debts.

After the bankruptcy court rules that the property is exempt from bankruptcy estate, a divorce court can help divide the property. Property exemptions are defined by federal laws and the state laws where the bankruptcy filing took place.

For further information on how a bankruptcy can help you in your situation, please contact an experienced Dallas Bankruptcy attorney.

At the Hopping Law Firm, P.L.L.C, our Dallas bankruptcy attorneys are experienced and knowledgeable in all stages of the bankruptcy process. We will examine your situation and walk you through the process.

Dallas bankruptcy attorney John Hopping has helped a number of clients file for bankruptcy in Dallas and across the state of Texas. Mr. Hopping will examine your situation, answer all your questions, and explore your options.