There are several factors that go into your credit rating, and each credit agency analyzes debt a little differently.  Naturally, negative reports from creditors are going to affect your overall score and recent negative information will scare away potential creditors.  However, along the same lines, recent positive reports will give creditors more incentive to offer a loan.

There is no doubt that bankruptcy has a negative impact on your credit report, but it’s not the end of the world.  The quicker you get positive reports from creditors the quicker your score will increase.  One way to do this is to get a credit card, use it, but pay it off in full each month.  Inevitably any credit card you get shortly after filing bankruptcy will have a very high interest rate. But if you pay it off each month and don’t let the interest accrue then you are no worse for the wear.

Another way to build credit is to pay your monthly bills on time, whether that be a cell phone, utilities, car payment, house payment, student loans, taxes, etc.  Generally even after filing bankruptcy an individual will have bills due each month, pay those bills on time and your credit score will increase.

Keep in mind that credit reports often misreport information.  After filing bankruptcy review your credit report and make sure that pre-bankruptcy debt is included in the bankruptcy on the report, usually indicated by a “BK” next to the debt.  If certain debt is not included, let the credit bureaus know.  This can be a timely process but it is well worth it.

Other things you can do is create a tight budget and stick to it, set up automatic payments so you’re sure not to miss a bill (keep tabs on automatic payments because there are always potential issues).  DO NOT max out credit cards, this will always reflect negatively on your credit reports.  And finally, if you’re having trouble getting unsecured debt you can always get a pre-paid credit card, just be sure to get one that does not have excessive fees involved.

Contact Us

Give us a call to find out more about how you can file for bankruptcy and begin to restore your credit.  801.413.1753 or 888.337.3235 or click here to email us.  We are Utah bankruptcy lawyers and can help you to achieve your financial goals.  We serve Provo, Salt Lake City, and Ogden and all of Utah.

Depending on the amount of your income and debts as well as other factors, you could have most of your debts discharged through a Chapter 7 bankruptcy proceeding or restructure your debts through a Chapter 13 bankruptcy proceeding which will allow you to consolidate your debts under the protection of the court and pay your debts back with modified conditions and generally with lower payments.

Let the Utah Bankruptcy Attorneys help you start afresh under the bankruptcy laws.  It is time for you to get your financial affairs back on track; it is time for you to free yourself from those collection calls; it is time for you to Get Protected!