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
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Everyone has debts from time to time. While some people can easily pay off their debts, there are those that find it hard to settle them. This can quickly end in overwhelming debt and a bad credit score. However, once you file for bankruptcy, your credit score will actually start improving almost immediately. Our lawyers can also guide you in rebuilding your credit.

How to Repair Your Credit

Sometimes, credit repair is needed to clean up certain items that creditors may not have reported correctly. This can be as simple as disputing errors with credit agencies or learning basic financial skills like budgeting to ensure that any new credit items that come on to your report are positive ones. If you are struggling to pay off your debts, read on to see how you can repair your credit, how to re-establish credit after bankruptcy, and challenge credit reporting errors in the future. 

Millions of people each year suffer from poor credit ratings as they take out loans that they cannot pay. But it is not only borrowing too much that causes a drop in your credit score. Even identity theft can damage your credit history. Working with credit lawyers allows you to monitor your credit report so that you can always stay on top of your financial activities.

Our reliable lawyers can look into and monitor your credit report and provide legal advice on implementing a plan that leaves you debt-free. While you have overextended lines of credit in the past, Leinart Law will not focus on the decisions that you have made. Instead, we will teach you how to get back on your feet by implementing several steps so that you can exercise credit repair efficiently.

As a part of your bankruptcy filing, we will set you up to meet with a credit counselor to help you with planning your finances so that you can get out of the financial rut that you are currently in and stay out even after the bankruptcy.

Do You Need Credit Repair?

It is important to know the tell-tale signs that you need credit repair. Credit reporting agencies typically consider any score below 700 to be sub-prime. With a credit score below 650, you may also start getting denied for credit cards or loans. By this point, you should start considering options to get rid of your debt. 

Credit card companies look in to the credit report of each applicant before they approve the application. Having a bad credit score means that you are a liability to the bank. Another sign that you need to look out for is when debt collectors harass you. Once this happens, it only means one thing – your creditors have given up the thought of you paying off your debt with them. So, they resort to collection agencies to try and get the money you owe them.

Having bad credit also affects other aspects of your life. For instance, employers can check a candidate’s credit if they are being considered for a promotion or new job. Having bad credit can also limit your access to loans, buying a car or home, and many other investment opportunities.

When you’re in this position, you know that you are in deep trouble and you need to consult a debt lawyer who understands credit repair. Whether you need help with credit card debt negotiation, filing a bankruptcy, getting creditors off your back, or something else related to your financial troubles, a credit lawyer can help.

How will I Re-establish Credit?

The first step is to make sure that your credit report is as clean as it is supposed to be. This may take writing the three major credit card bureaus to dispute or provide documentation (such as all of the debts that were discharged in a bankruptcy) to include on your credit report.

The second step is to establish a good payment record and have that properly documented on your credit report. A good payment record can be accomplished by making on-time payments on your house and cars and by obtaining one or more secured or unsecured credit cards. Even though a major goal of bankruptcy is to wipe out credit card debt, it can help reestablish credit if you use it in small amounts and pay the balance in full each month.

What about the Credit Bureaus and Your Credit Report?

It’s important to check your credit report at least once a year. By law, the Fair Credit Reporting Act entitles you to a free copy of your credit report on a yearly basis. Not only does it help protect you against identity theft it also 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 becomes even more important. While credit reporting agencies like Equifax, Experian, and TransUnion are supposed to remove inaccuracies, mistakes are sometimes made, and reporting on delinquent accounts and unsecured debt from your credit report after your bankruptcy might be inaccurate. 

At Leinart Law Firm, one service we provide is periodically checking this for you (even while your bankruptcy is active). If we find errors or violations we can not only get these fixed but can sometimes even obtain a monetary settlement from the creditor who violated the credit reporting legal guidelines.

How Long Will Bankruptcy Stay On My Credit Report?

Bankruptcy can remain on your credit report for 7 to 10 years, depending on how you file. A Chapter 7 bankruptcy will remain on your credit report for 10 years. A Chapter 13 bankruptcy usually remains on your report for 7 years, but could be removed sooner if you repay a portion of the debt.

One thing to remember, however, is that this is generally the same amount of time any negative credit items will appear on your credit report after the point that they are finally paid off. By filing for bankruptcy and getting these debts handled, you are speeding up that process.  The faster you get rid of the debt, the faster your credit will start to recover.

How to Fix Your Credit After Filing Bankruptcy

Once you’ve filed for bankruptcy you’ll ultimately want to work toward reestablishing your credit. You may find it hard to get credit at first but don’t be discouraged. You may have to pay a higher interest rate, but if you use your credit wisely and pay your balance each month this should not impact you greatly.

How Can I Fix My Credit?

Reestablishing your credit will take some work. Here are a few steps you’ll need to take.

  • First, verify that your credit report appears correct after the bankruptcy. You may need to provide documentation to the three major credit reporting bureaus to show the debts that have been discharged. While the debts will still be listed, ensure that your credit report shows that these debts have been discharged through bankruptcy and that you no longer owe them. 
  • Next, establish a good payment record and make sure it shows up on your credit report. For example, make car and house payments on time. You may also need to try and get a credit card (secured or unsecured).

You may think that getting a credit card goes against one of the main goals of filing bankruptcy in the first place, but it could be a crucial step toward reestablishing your credit. Make sure you pay the balance in full each month and only charge small amounts.

Go Slowly

When working to reestablish your credit, it’s very important that you don’t act too quickly – even though you may be able to get credit sooner than you think. One of the reasons is that if you file Chapter 7 bankruptcy, your debt-to-income ratio is dramatically reduced. This may make you a better credit risk in the eyes of some lenders. If you file Chapter 13, you’ll still see a debt-to-income ratio reduction. However, this won’t occur as quickly as it would with a Chapter 7 bankruptcy.

Contact Our Debt and Bankruptcy Lawyers for a Free Consultation

Leinart Law Firm is a debt and bankruptcy law firm dedicated to helping Texans get a fresh start. We help individuals and families get the fresh financial start they deserve, and all of that starts when you schedule a free consultation with one of our debt lawyers.

Contact our attorneys for a free consultation and inquire about additional services we offer in terms of debt relief and Chapter 7 and Chapter 13 bankruptcy. To get started, fill out the contact form at the top of this page, email or call our offices today.