If you are deeply in debt, filing for Chapter 7 bankruptcy can give you a fresh start, but it can also leave you with an undesirable credit score. This doesn't mean your credit score will be affected forever by your bankruptcy. In fact, you can start rebuilding your credit score immediately! At Bruce W. White, P.C., we aim to provide financial solutions for those who have run into hard times. If you've recently filed for bankruptcy, learn how to start rebuilding your credit from a Richmond bankruptcy attorney today.

Create a Budget

After going through bankruptcy, creditors want to see that you can manage your income and pay any current bills and obligations. Once you complete the bankruptcy process, create a budget for yourself and follow it. Once you have your budgeting back on track, begin to build an emergency fund. According to a study by the Urban Institute, families with a savings cushion of as little as $250 to $749 are less likely to be evicted, miss housing payments, or required public benefits after a job loss or medical emergency.

Apply for Credit Lines that Fit Your Needs

People that have filed for bankruptcy can be a high risk to creditors. Missed, or delinquent payments are likely a consistency on file. Borrowers and lenders are willing to lend to you if you can mitigate the risk a bit. By providing extra assurances you will not default on your credit payments, creditors will likely be more interested in lending to you. Secured loans and credit cards are one way to repair your credit history. When you apply for a secured credit card, you typically make a deposit of around $500. Your deposit provides security for the creditors in case you default on your payments. For the best possible credit score, only use 30% of your credit line and pay off the balance in full at the end of every billing cycle.

Be Consistent

After you've established a budget and a line of credit, the next thing you want to do is be consistent and vigilant. Check your credit report regularly for inaccuracies or incorrectly reported information. Try to avoid being late on any payments to bills or creditors. Set up a reminder on your calendar at home or, if you have a smartphone, set up calendar reminder notifications for yourself. If those don't work for you, one of the best ways you can ensure your bills are all paid on time is to have them auto-debit from your bank account. This way, you can't forget to pay them on time.

If you have further questions, our Richmond bankruptcy attorney is happy to provide you with a credit counseling plan. Our goal is to help you get back on track with your finances, call (804) 655-0502 to set up a free consultation today.