Credit Can Be Rebuilt After Bankruptcy

Among the greatest fears for people considering filing for personal bankruptcy protection is that their credit will be ruined. Bankruptcy filing do affect credit ratings and it will be more difficult to be approved for things like car loans and home loans for a time, but there are steps that can be taken to mitigate the impact that bankruptcy has on a personal credit score.

A personal credit score is the way that creditors figure out whether they want to loan money to an individual. A credit score will affect whether a person gets a car loan or a student loan and it can affect rental agreements and even job applications. A bankruptcy can remain on a credit score for 10 years.

A variety of agencies will want to see the credit score before making a decision about a person – especially with regards to a financial transaction.

Since bankruptcy is inevitably going to have an effect on the credit score, there are a few things that can be done to improve it and move the number back up quickly.

• Review the score. Individuals can review their credit score for free once a year. It is important to look over all of the things that may have popped up on a credit score annually. Mistakes can happen and it those mistakes could hurt the score even if they are not true. It also is important to keep an eye out for fraud. IF someone sues a social security number illegally, it can emerge on a credit score and damage the rating.

• Be diligent about bills. Paying bills on time every time is the simplest and most efficient way to build better credit.

• Apply for new credit. Most people get rid of all of their credit cards when they file for bankruptcy. After the bankruptcy has been discharged, it is smart to apply for another credit card to be used sparingly and always paid off. This will help begin to build positive credit again.

• Avoid scams. Since there are hundreds of thousands of people filing bankruptcy and beginning to try and repair their credit, there are agencies preying on the vulnerable. It is important to investigate thoroughly any agency that offers to help repair credit. Many are expensive and there is nothing they can offer that cannot be accomplished with diligent, mindful attention to personal finances.

Filing for bankruptcy will have a negative effect on a person’s credit rating, but the credit score can be rebuilt with patience and hard work.

O. Reginald (“Reggie”) Osenton is the Owner and President of Osenton Law Offices, P.A. If you need a Brandon bankruptcy lawyer, Tampa bankruptcy lawyer, or Tampa bankruptcy attorney, call 813.654.5777 or visit

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