Bouncing Back After Bankrupcy

Bankrupcy is one of the most financially traumatic experiences one can undergo not to mention that it stays on your credit report for up to 10 years. There are two different types of bankruptcies; Chapter 7 and Chapter 13. Chapter 7 is where a bankruptcy judge orders your assets liquidated and the proceeds used to pay off your creditors. Chapter 13 is where a structured payment plan is put in place and you are required to adhere to this plan to pay off your debts within a stipulated duration of time. Failure to do this can result in the court over-turning the Chapter 13 ruling and converting it to a Chapter 7.

Bankruptcy can affect your financial livelihood and cost you hundreds of extra dollars in higher interest rates not to mention the embarrassment of perpetually being denied credit. Despite the headaches of bankruptcy, there is a way out and countless families are realizing with the right strategy, they can indeed overcome.

Credit repair is the process of rebuilding one's credit especially after a bankruptcy, foreclosure, divorce or a charge-off. After bankruptcy, your credit may be reeling in the mid-400s depending on the presence of other delinquent items, length of credit history, state of revolving accounts and recent payment defaults (usually people filing for bankruptcy are delinquent in multiple bills at the same time). You can easily raise your credit score by applying for 2 -3 credit cards. If no lender wants to talk to you especially because of the bankrupcy you can try secured credit cards. These are easy to acquire and anyone is approved. About 6 or more months of faithfully paying on time will do great benefit to your credit score. So the secret here is to boost areas of your credit that are still in your control.