Post Discharge Suggestions to Restore Credit

Post Discharge Suggestions to Restore Credit

A good credit rating helps your financial future in several ways:

If you are gainfully employed and able to live within your means, you are an excellent credit risk post bankruptcy. Why is this so? The Discharge Order has eradicated most or all of your personal debt obligations; you cannot file another Chapter 7 petition for 8 years from the date your previous petition was filed.
If you wish to rebuild your credit score rating, I would suggest the following pro-­‐active course of action.
Wait about 30 days after the bankruptcy discharge order has been entered. Go on line to www.annualcreditreport.com and print of a complete credit report from one of the big three services. ( You get one free credit report from each of the three agencies yearly. ) Go over the report carefully. If you see any items marked “charged off” or some such you need to take immediate action. Circle the offending items. Now look at Schedule F (the listing of unsecured creditors on your petition) and also circle the offending items. Next scan Schedule F from your petition, a copy of the bankruptcy discharge order you just received, and the various items you have circled into your computer. Email the these items to the reporting agency you chose asking them to correct all of the offending items from “charged off” or some such, to discharged in bankruptcy. In this way, closure will be brought to these open items. This will have a positive influence on your credit score. Wait another thirty days and recheck to be certain all derogatory remarks have been removed and replaced with some sort of bankruptcy notation. Be very pro active in this process.

Accept any offers for credit cards for which no annual fee is charged. Then make it a point every month to pay off the open balance to within a dollar or so of the total amount of the bill. Do this immediately when the statement is received. I also suggest you pay by check and snail mail so you have a good audit trail.

A good credit score can help you in numerous ways:

  • Purchasing property or refinancing a mortgage
  • Purchasing or leasing an automobile
  • Rating for the purchase or renewal of insurance
  • General borrowing at better interest rates.