How Do I Repair My Credit After Bankruptcy?
Many people incorrectly think that filing a bankruptcy will ruin their credit for many years. The truth is, bankruptcy can be a necessary and important step to quickly healing credit that has been heavily damaged by collections, lawsuits, repossessions, and garnishments. This credit repair results from the benefits of the bankruptcy discharge, which requires creditors to remove any discharged balances from your credit report. Unfortunately, creditors don’t always follow the law, and some continue to report negatively even after a successful bankruptcy discharge! This is where the attorneys and staff at Beutler Law Offices go above and beyond what most Utah bankruptcy attorneys do. As part of the bankruptcy services we offer, Beutler Law Offices will assist you with checking your credit report after the discharge is entered, and dispute any wrongful credit reporting. If a creditor refuses to fix the illegal reporting, Beutler Law will sue the creditor at no additional cost to you! The attorneys at Beutler Law Offices have recovered tens of thousands of dollars in damages and fines on behalf of debtors struggling with wrongful reporting.
How Long Does It Take to Repair My Credit After Bankruptcy?
For anyone struggling with collections, lawsuits, repossessions, garnishments, or other financial problems, buying a home can seem out of reach. Credit scores languish for years, and will often never get above 600-650. This is because creditors continually report old accounts late, even when you are doing well with your current debts and making on time payments. This vicious cycle can go o for years.
Bankruptcy helps dramatically in that it gives you a fresh start, and wipes debt collections, credit cards, and medical bill collections from your credit report. You debt to income ratio suddenly looks much better after a bankruptcy, and provided you take steps to heal your credit and build a good ongoing history, you should be able to obtain a credit score of 700 or better within 12-15 months after filing bankruptcy. The attorneys and staff at Beutler Law Offices can play a key role in your credit report healing, by ensuring creditors play by the rules and remove negative credit notations from your reports.
How Long Does It Take to Buy a Home After a Bankruptcy?
If purchasing a home is a goal of yours but you have a history of judgments, garnishments, or collections, filing a bankruptcy may be the fastest way for you to repair your credit and qualify for home ownership. FHA guidelines for FHA loans require a 2 year waiting period after a bankruptcy, while private lenders will funds loans much sooner. Some clients of Beutler Law Offices have gone on to purchase homes in as little as 6 months after a bankruptcy filing. A good conservative rule of thumb is to anticipate a 2 year wait after bankruptcy to qualify for a home, especially if using an FHA loan.
What Steps Can I Take to Repair My Credit After a Bankruptcy?
Some of the best things you can do after your bankruptcy discharge include:
- Checking and monitoring your credit to ensure accurate reporting
- Using a secured credit card and making on time payments
- Use only 1/3rd of your available credit or practice low credit utilization
- Co-sign or obtain an auto loan after your bankruptcy
- Become an authorized user on a credit card account and ensure timely payments
If you have a history of debt issues and would like a fresh start or help repairing your credit, call or text 24/7 at 801-872-4882 the attorneys at Beutler Law Offices to find out what the best options are for you.