Rebuilding credit after filing a Chapter 7 or Chapter 13 personal bankruptcy and receiving a discharge is an important question often asked by individuals filing bankruptcy. Whether the individuals live in Cherry Hill New Jersey, Blackwood New Jersey, Mount Laurel New Jersey or any of the many cities and towns in the area, years ago when those individuals filed for bankruptcy it was much more difficult to build up credit. However, that has changed to a large degree. In fact often people file bankruptcy at a point where their credit score is low from a number of defaults and the mere filing of the bankruptcy itself can be a huge first step towards rebuilding credit. However, there are other important steps to take in reestablishing credit.
It is important to understand that credit reports are often inaccurate. Consequently a few months after receiving a bankruptcy discharge it is highly recommended that you get a credit report and confirm that it properly states your financial circumstances. Debts discharged in bankruptcy should be reflected in the credit report as having been discharged. Sometimes for whatever reason a credit card may reflect as still being open and in default. In that circumstance you would want to contact the credit reporting company and provide them a copy of your bankruptcy schedules showing that the creditor had been included in the bankruptcy and ask that they correct their credit report. Another way to build up credit is to apply for a credit card or retail card. While the individuals should certainly be cautious especially if bankruptcy was caused by credit card debt, having a credit card where it is used and paid off each month will help build up credit. In addition, opening up a bank account is a good way to help demonstrate you are responsible. Also, it is important to make sure all payments, whether it is utilities, rent or your new credit card, are timely paid.
Following these simple steps can help to rebuild credit after bankruptcy in no time.