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Rebuilding credit after a Chapter 7 bankruptcy

Many South Carolina residents who are struggling with financial obligations realize that their credit rating will take a hit if they file for bankruptcy. There are a few ways a person may begin repairing credit soon after the bankruptcy is filed, however.

One of the most important factors is making payments on time. Over half of all bankruptcies are filed when there are no late payments on record. Many people in this situation will see their credit score drop, but over time, making payments on time can help improve a person's credit score.

When re-establishing credit, most people will find that their credit limits have dramatically diminished after a Chapter 7 bankruptcy and that their accounts have been closed. It is important for anyone trying to build their credit rating back up to only use about 50 percent or less of their available credit and to avoid opening more accounts than they need. Opening too many accounts at once can cause a drop in a person's credit score because the age of the accounts matters.

The types of credit accounts a person has can affect credit scores, and a person who has just filed for bankrupcty may only have secured debts. A person who has just filed for bankruptcy may consider applying for secured credit cards, which can build back their installment or revolving credit.

A Chapter 7 bankruptcy is a way for many people to obtain debt relief. Some people may actually find that their credit score has improved after filing, while others may need to take careful steps to improve their credit score. People who are considering such a step may wish to speak to an attorney about whether they qualify under Chapter 7, whether or not they can keep their property and how the bankruptcy may affect their credit score.

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The Huggins Law Firm, PA

Columbia Office
1812 Lincoln Street
Suite 201
Columbia, SC 29201

Phone: 803-764-1558
Fax: 803-764-1563
Columbia Bankruptcy Office

Columbia Office

Charleston Office
925-D Wappoo Road
Charleston, SC 29407

Phone: 843-509-0039
Fax: 866-481-2325
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