Copyright The Law Office of Eric L. Crump, PLLC, 2007, All rights reserved
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THE LAW OFFICE OF
ERIC L. CRUMP, PLLC
ATTORNEY AND COUNSELOR AT LAW
____________________________________________________
THIS IS AN ADVERTISEMENT
REESTABLISHING CREDIT
AFTER BANKRUPTCY
After a debtor receives a discharge in bankruptcy,
creditors whose debts are discharged are required to
report that the account has a zero balance. The fact of
the filing itself can remain on the credit report for 10
years from the date it was filed. A debtor interested in
re-establishing credit after bankruptcy should obtain
credit reports from the 3 largest credit reporting
agencies, (Experian, Equifax, and Trans Union) and
ensure that the account balances have all been zeroed
out. If they have not, the debtor should contact the
credit reporting agencies and ask that the record be
corrected.

      Methods of Re-Establishing Credit

A debtor seeking to re-establish credit should consider
applying for a secured card, usually a Visa or Master
Card. This is a credit card issued by a bank to a
customer who is required to establish a savings account
at the bank, which is used as security or collateral for
the card. Typically, the limit on the card is based on the
amount of collateral put up in the form of the savings
account. Often, the bank will have an annual fee. The
benefit of the secured card is that banks will issue them
to persons with poor credit reports in the past, but who
have the ability to pay the deposit to secure the account.

Other methods include buying a car from a local car
dealer who advertises that it specializes in making car
loans to persons with bad credit or recent bankruptcies.
Also, a debtor with a personal relationship with someone
at a local bank should not hesitate to seek assistance
from that source.

          Caution in Rebuilding Credit

Ultimately, however, debtors emerging from bankruptcy
should use their experience  to avoid getting into the
same financial traps which snared them before. All too
often, this was the easy availability of unsecured credit
in the form of unsolicited, pre-approved, credit cards.
Debtors should take steps to budget properly, not spend
beyond their means, and resist the temptation to incur
debt beyond their reasonable ability to repay just for the
purpose of re-establishing credit. Debtors should avoid
being enticed by so-called "credit repair" agencies.
These are often simply unregulated rip-offs, who prey
on the financially-distressed, and who do nothing more
than what debtors themselves can do by exercising their
legal right to have their reports properly list their
outstanding obligations.
WE ARE A DEBT RELIEF AGENCY – WE HELP
PEOPLE FILE FOR BANKRUPTCY RELIEF UNDER
THE BANKRUPTCY CODE
620 South Third Street, Louisville, Kentucky 40202
Phone: (502) 540-9958; Fax: (502) 540-9957
email: contact@crumplawoffice.com