Credit Repair After Bankruptcy in Texas

Our Lawyers Can Help You Repair Your Credit

  • Tips on discharging debt and rebuilding credit
  • Guidance on debt relief and bankruptcy options
Start Your Free Consultation
A person holds a pile of coins with leaves growing out of them for Credit Repair Lawyers

Whether it’s a balance on a credit card after a vacation or piles of medical bills caused by an illness or accident, everyone has debt at some point in their lives. Although some people can easily pay off their debt, some struggle to pay it off for years, which can result in overwhelming debt and a poor credit score. However, debt relief solutions like bankruptcy can help you get out from under excessive debt and help you repair your credit. Our bankruptcy lawyers at Leinart Law Firm can help you discover options to improve your financial situation and guide you through rebuilding your credit.

Credit Repair Lawyers

What Is Credit Repair?

There are several aspects to credit repair and many ways to help improve your credit score. Sometimes, credit repair is needed to clean up items that were incorrectly reported by creditors, which can be as easy as disputing errors with credit agencies and having them removed. In addition, learning basic money management skills such as budgeting can help ensure you make timely payments so any new items on your credit report are positive ones. Identity theft can seriously damage your credit rating, so it’s important to keep an eye on your credit report and take care of any issues you notice right away. Our credit lawyers help you monitor your credit report so you can always stay on top of your financial happenings.

What Can Credit Repair Do for You?

Millions of people each year suffer from poor credit ratings when they take out loans they cannot repay. If you have overextended lines of credit or overdue bills, our Dallas debt attorneys don’t focus on the decisions you’ve made in the past. We help you learn how to get back on your feet and develop a plan to help you get debt free and efficiently repair your credit. Bankruptcy is often the best solution to rid yourself of debt and begin to rebuild your credit.

Do You Need Credit Repair?

It is important to know the telltale signs that you may be in over your head when it comes to debt. Credit reporting agencies typically consider any score below 700 to be sub-prime. Credit card companies and lenders check your credit report before they approve any application. If your credit score is below 650, you may also start being denied for credit cards or loans. At this point, it’s a good idea to seriously consider options for getting rid of your debt.

If you’re unable to pay your bills and debt collectors are harassing you, your score will keep dropping. Once your creditors have handed your accounts over to a collection agency, it means they have given up on you paying off your debt with them. The more negative items on your credit report, the worse your score will become.

Having bad credit affects your ability to buy a car, a home or other necessities, and it can affect your employability. Some employers check a candidate’s credit before hiring them or promoting them to a new position. If your credit is subpar, you may miss career advancement opportunities and chances to earn a higher income.

Being in this kind of financial position is stressful and overwhelming. If you’re in deep economic trouble, seeking the counsel of a debt lawyer who understands credit repair is vital. Our credit attorneys can take a comprehensive look at your finances and determine which solution may be right for you. Whether you need help with credit card debt negotiation, filing a bankruptcy, getting bill collectors off your back or something else related to your financial troubles, we can help. Regardless of which option works best for you, the only way you can begin repairing your credit is by taking some kind of action.

How Bankruptcy Influences Your Credit Score

Embarking on the journey of credit repair after bankruptcy in Texas can be daunting, but understanding the impact of bankruptcy on your credit score is a crucial first step. At Leinart Law Firm, we’re here to shed light on this intricate process. Let’s delve into the key aspects:

  1. Initial Dip in Credit Score:

Post-bankruptcy, it’s common to experience a significant drop in your credit score. This dip reflects the severity of financial challenges and the legal proceedings involved. However, it’s not the end of your credit story.

  1. Bankruptcy Reporting Period:

Bankruptcy information stays on your credit report for a specific period, varying based on the type of bankruptcy filed. Chapter 7 bankruptcies remain on your report for ten years, while Chapter 13 lingers for seven years. Understanding this timeframe is essential for planning your credit repair journey.

  1. Impact on Credit Accounts:

Bankruptcy affects different types of credit accounts differently. Secured debts, like mortgages and car loans, may be impacted more than unsecured debts. Recognizing these variations helps in strategizing your credit repair efforts.

  1. Rebuilding Credit Over Time:

Despite the initial setback, credit repair after bankruptcy is feasible. By adopting responsible financial habits, such as timely payments and careful credit management, you can gradually rebuild your credit score. Patience and persistence are key.

  1. New Credit Opportunities:

While it may seem counterintuitive, acquiring new credit is a pivotal step in Texas credit repair after bankruptcy. Secured credit cards and responsible credit use showcase your commitment to financial responsibility, positively influencing your creditworthiness.

  1. Addressing Negative Entries:

Post-bankruptcy, closely monitor your credit report for any inaccuracies or discrepancies. Disputing and rectifying these errors ensures a more accurate representation of your financial standing and aids in effective credit repair.

  1. The Importance of Timely Payments:

Timely payments are the backbone of credit repair after bankruptcy. Consistently meeting payment deadlines demonstrates financial responsibility to creditors and contributes to the gradual improvement of your credit score.

  1. Diversifying Credit Types:

A well-rounded mix of credit types positively impacts your credit score. Explore opportunities to diversify your credit portfolio responsibly, striking a balance between installment loans, credit cards, and other credit accounts.

  1. Professional Guidance:

Seeking professional assistance for credit repair after bankruptcy can streamline the process. Our Texas Credit Repair After Bankruptcy services provide personalized strategies to help you navigate this journey.

  1. Monitoring Progress and Adjusting Strategies:

Regularly monitor your credit score and report to track progress. If needed, adjust your credit repair strategies based on your evolving financial situation, ensuring a dynamic and effective approach.

Understanding the impact of bankruptcy on your credit score is the cornerstone of a successful credit repair journey. At Leinart Law Firm, we’re committed to helping you navigate the complexities of credit repair after bankruptcy. Contact us today for a personalized consultation, and let’s embark on the path to rebuilding your credit together. Building better credit doesn’t have to be difficult when you have our firm on your side.

How Can I Repair My Credit After Divorce?

The emotional fallout of divorce is difficult, and it can be even more challenging when financial problems become a serious issue. If you are considering divorce and both spouses have poor credit, you may want to file a joint bankruptcy before starting divorce proceedings. If you’re already divorced and want to repair your credit, it’s important to find a Texas debt attorney who has a deep understanding of your case’s facts. There are many factors to consider, such as the specifics of your divorce settlement agreement and the division of debts. Filing bankruptcy may not always be the best option. Depending on the circumstances, you may be able to start repairing your credit with debt consolidation, cleaning up any errors on your credit report and other debt relief solutions.

How Bankruptcy in Texas Can Help You Get a Fresh Financial Start

Before you can begin to repair your credit, you need to take care of the debt that’s weighing you down. Chapter 7 is a liquidation bankruptcy that can completely wipe out most types of debt and give you a clean financial slate.

If you file Chapter 13 bankruptcy, your unsecured debt may be discharged (wiped away) or greatly reduced and your secured debt can be restructured into a manageable repayment plan that you will pay for the next 3-5 years. Some people are hesitant to file bankruptcy because they believe they will lose their homes or cars. This is simply not true. In the majority of cases, consumers don’t have to give up any property, and bankruptcy can help with financial issues such as:

  • Repossession
  • Foreclosure
  • Wage garnishment
  • Credit card debt
  • Tax debt

Credit Counseling Can Also Help With Credit Repair

Meeting with a credit counselor is required before you can file for bankruptcy. They will look at your income, debts and other financial information and advise you of your options to get out of the financial rut you’re in. A credit counselor can also teach you how to create an effective budget so you know how to practice responsible financial habits after bankruptcy. Our Texas bankruptcy attorneys can explain the process to you and help you understand how bankruptcy can empower you to improve your financial circumstances and boost your credit score.

What Types of Debt Cannot Be Discharged in Bankruptcy?

Certain types of debt are not dischargeable in bankruptcy. Back child support or alimony, student loan debt, certain types of tax debt, fines and restitution and payments owed for injury caused by operating a vehicle while intoxicated can’t be discharged. It’s also important to make sure all dischargeable debts are included in your bankruptcy filing. Any that you omit or forget to include will still be owed and show up on your credit report. It’s critical to be unfailingly honest with your attorney about your financial situation. Deliberately hiding assets or failing to include debts can have serious repercussions down the road.

How to Repair Your Credit after Filing Bankruptcy

Once you’ve filed for bankruptcy, you’ll want to work toward reestablishing your credit. It can be hard to get credit at first, but don’t be discouraged. You may have to pay a higher interest rate, but if you use credit cards wisely and pay your balance each month, your score will start inching up. Establishing a stellar and properly documented payment record on your credit report will help you rebuild it over time. If you own a home or car, make sure all payments are made on time.

A good payment record can also be accomplished by obtaining one or more secured or unsecured credit cards. This may seem counterintuitive if credit card debt was a major reason for filing bankruptcy, but using a credit card wisely can help reestablish your credit. This means you should only use it for small amounts and pay the balance in full each month. Make sure that your credit report is as clean as it should be. You may have to contact the three major credit card bureaus to dispute items or provide documentation that debts were paid off or discharged.

Why Is Checking Your Credit Report so Important?

Checking your credit at least once a year is critical to protecting your financial security and stability. By law, the Fair Credit Reporting Act gives you access to a free copy of your credit report annually. Checking your credit helps protect you against identity theft, and it allows you to review what has been reported to see if there are any errors.

Once you have completed a bankruptcy, checking your credit report is even more important. Although credit reporting agencies like Equifax, Experian and TransUnion are supposed to remove inaccuracies, they may overlook reports of delinquent accounts and unsecured debt that have been discharged but remain on your credit report after bankruptcy.

Your bankruptcy lawyer at Leinart Law Firm will periodically check your credit report for you, even while your bankruptcy is active. If we find errors or violations, we will get them fixed. Sometimes, our attorneys may even be able to obtain a monetary settlement from a creditor who violated credit reporting laws or regulations.

Go Slowly When Reestablishing Credit

When working to reestablish your credit, it’s very important that you don’t act too quickly. After you file Chapter 7 bankruptcy, your debt-to-income ratio is dramatically reduced. This can make you a better credit risk in the eyes of some lenders, and the credit card offers may start trickling in.

If you file Chapter 13, you’ll still see a debt-to-income ratio reduction, but it won’t occur as quickly as it would with a Chapter 7 bankruptcy. Even if you’re able to get credit sooner than you think, the last thing you want is to end up in another financial predicament before you’ve even had a chance to fully repair your credit.

How Long Does Bankruptcy Stay on Your Credit Report?

Bankruptcy can remain on your credit report for seven to 10 years, depending on how you file. Chapter 7 bankruptcy will appear on your credit report for 10 years. Chapter 13 bankruptcy usually stays on your report for seven years but could be removed sooner in some circumstances. Although this may seem like a long time, it is typically the same amount of time any negative credit items will appear on your report, even after they’ve been paid off. Filing for bankruptcy in Texas actually speeds up the process and makes it easier to repair and rebuild your credit. The faster you get rid of the debt, the sooner your credit will start to recover.

Why Choose Our Credit Lawyers in Dallas and Fort Worth?

At Leinart Law Firm, we understand that unmanageable debt can have a significant impact on all areas of your life. For more than 15 years, our bankruptcy law firm has helped Texans find debt relief solutions that improve their financial stability and their lives. Our dedicated team of lawyers, paralegals and administrative professionals is committed to doing right by our clients above all else. We care about you and strive to provide the personalized service you deserve. Our Dallas debt attorneys offer a thorough evaluation of your financial circumstances and give straightforward legal advice that can help you make informed decisions about your credit repair options.

We know clients put their trust in us when looking for debt relief solutions. Our team is here for you every step of the way and will gladly address any questions or concerns that are on your mind. Although our approach with our clients is compassionate, we use our knowledge, skills and experience to aggressively fight for your rights and help you get a fresh financial start.

Contact Our Debt and Bankruptcy Lawyers for a Free Consultation

To learn more about credit repair, bankruptcy and the other legal services we offer, contact Leinart Law Firm to schedule a free case evaluation. You can email us, use our convenient chat feature or fill out the contact form on our website to get in touch. Our bankruptcy attorneys serve clients in Dallas, Fort Worth, Plano and throughout north Texas.