Rebuilding Your Credit After Bankruptcy

Most people have concerns about the way a bankruptcy filing will affect his or her credit history or credit score. The truth is, if you are in a position where bankruptcy is a possibility, it is likely that your credit is severely damaged already. While filing bankruptcy will impact your credit, in the long run it gives you the chance to rebuild credit, and do it fairly quickly.

At Minion & Sherman, we help people in New Jersey get started rebuilding their financial lives through bankruptcy. We are ready to sit down with you, explain the bankruptcy process and help you understand what can be done to improve your credit. With more than 40 years of combined experience, our skilled attorneys can give you the kind of honest, straightforward advice you need when facing tough financial times.

To arrange a free consultation with our experienced credit repair lawyers, please call 973-559-5791 or toll free 866-915-1839. You can also contact our credit repair law firm online. Evening and weekend appointments available.

How Are Credit Scores Determined?

There are a number of factors that determine your credit score. Some of the most important factors are:

  • Payment history
  • Amount of outstanding debt
  • Length of credit history
  • Recent credit inquiries
  • Types of credit you use (mortgage debt is "better" than store credit card debt, for example)

How Does Bankruptcy Help With Credit Repair?

Filing for personal bankruptcy can help you improve your credit rating by eliminating large portions of debt and leaving your finances in a much more manageable state.

Chapter 13 debt reorganization: The Chapter 13 program can improve your credit in several ways, including:

  • Reducing interest rates on credit card debts, medical bills and past-due mortgage payments to zero percent, giving you the ability to pay those debts faster
  • The Chapter 13 repayment plan is based on your budget. You only pay back what you can afford. In addition, much of your unsecured debt is discharged when the repayment period is over, which significantly improves your debt-to-income ratio and your credit.
  • A personalized payment plan is created to prioritize your debts and provide optimal repayment terms.

Chapter 7 bankruptcy: If you are unable to pay back debts, you may qualify for Chapter 7, which will eliminate your unsecured debt and give you a fresh start. Filing Chapter 7 erases a poor payment history and gives you a clean slate on which to start rebuilding credit. After bankruptcy, you can improve your credit score by making wise financial choices and paying your bills on time. A Chapter 7 filing appears on your credit report for 10 years, but your credit is not affected for that entire time. Many individuals are able to obtain loans within a few years of filing.

Learn More About Rebuilding Credit After Bankruptcy

We welcome the opportunity to speak with you about your financial situation and what we can do to help you repair your credit. For a free consultation, call 973-559-5791 or toll free 866-915-1839. You can also contact our law firm online. Evening and weekend appointments available. We serve clients in Essex County, Passaic County and Morris County.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.