Debt Relief Law Offices of Tampa Bay

Tampa Bankruptcy Attorney 727-849-3328

Life After Bankruptcy

You Can Restore Credit After Filing Bankruptcy

If you are considering bankruptcy or have filed personal bankruptcy to get a fresh financial start, you may believe that your credit record is permanently ruined. Contrary to popular myth, there is life after bankruptcy. You can re-establish your credit, often within 24 months of a bankruptcy filing.

Tips for Improving Your Credit

In accordance with the Fair Credit Reporting Act, a bankruptcy can remain on your record for a maximum of 10 years. Even before it is cleared from your record, however, you may find that your credit rating improves. Creditors look at your debt-to-income ratio when they make decisions about offering credit. After you successfully complete bankruptcy, your debt-to-income ratio will be better than it was previously.

There are a number of steps you can take to improve your credit after bankruptcy, including:

  • Watch your spending. Do not let your debt-to-income ratio get out of control.
  • Pay your monthly bills and make loan payments on time.
  • Check your credit report three months after your bankruptcy is complete to make sure all discharged debt has been removed. If there are errors, work with the credit reporting agencies to have them corrected.
  • It is a good idea to obtain a copy of your discharge to have proof that all dischargeable debts have been cleared. You can get a copy of your discharge from the clerk’s office of the Bankruptcy Court of the Middle District of Florida.