Tuesday, February 26, 2013

Repairing Your Credit After Bankruptcy

Having good credit after bankruptcy is possible, you could even obtain a good credit score within several years of your bankruptcy case being discharged. The first step is receiving the notification from the courts that all of your debt has been discharged. This form will be titled “Discharge of Debtor.” Keep this form in a safe place because you may need to show this to creditors as proof your debts are gone.

  • Review your credit reports and score closely and clear up any errors. Request your credit report from each of the three major credit agencies. Make sure that all of your debts are listed as “discharged.” Some creditors will not play by the rules. If you notice that some of your debts are not listed as discharged, contact your Bankruptcy Attorney Gregory J. Wald. 
  • The easiest way to reestablish credit is with a secured credit card. A secured card is a card that is backed by a deposit of cash as collateral. The deposit amount is the amount of credit you will be allotted. Be sure to ask whether the card reports to all three major credit bureaus. If not, find another bank that does so. Typically in 12 to 24 months you will be able to open a more traditional credit card.
  • It is good practice to keep your credit card balances below 30% of your credit limit, even if they are paid off in full each month. The lower the balance and the higher the limit, the faster your credit score improves.
  • Pay your utility bills and rent on time. This will go a long way in assisting to rebuild your credit. Delinquencies have the largest negative effect on your credit score.
  • Get a gas store card. These types of cards can be easier to get than a regular credit card and if you are trying to establish credit history, these small monthly payments can be a great help in boosting your credit score.

By following a few of these steps and by making your monthly payments on time, you will be back on the road to having good credit.


Gregory J. Wald, Attorney at Law
1500 Northland Plaza
3800 American Boulevard West
Bloomington, MN 55431
Telephone: 952-921-5802
Toll Free: 1-866-747-1130
Fax: 952-831-1346
BankruptcyMinn.com
Gwald314@msn.com

Wednesday, February 13, 2013

Bankruptcy The Second Time Around

If you have already filed for bankruptcy and you find yourself struggling with debt again, you may be eligible to file for bankruptcy a second time -- if certain criteria are met.

There are two main types of bankruptcy, Chapter 7 and Chapter 13. You are able to file more than once under each type of bankruptcy, however federal laws set into place in 2005 have made it more difficult. While there is no limit to how often you can refile, filing too closely together can be a waste of time if you would like your debt discharged.

If you initially filed for Chapter 7 bankruptcy (which eliminates most debt) in 2005 you will be eligible to file Chapter 7 again in 2013. Part of the criteria is that you wait at least 8 years between filing. However, if your second filing is for Chapter 13 (which restructures debt), you only have to wait 4 years rather than 8. The time periods between filings are measured from filing date to filing date and not the date your debt was discharged.

If your first filing was Chapter 13, you only have to wait 2 years before filing for Chapter 13 again. If you plan on your second filing being Chapter 7 this time, then 6 years must pass between filings.

There are exceptions to these time periods. If you are considering filing bankruptcy for the second time, contact Minnesota Bankruptcy Attorney Gregory Wald for more information.