San Diego Credit Repair Attorneys

Despite what you may have been told, you can actually take steps to begin repairing your credit soon after filing for bankruptcy. While it may take years to recover a solid credit rating, many people are able to qualify for a credit card with a small line of credit – typically $300-800 – shortly after a bankruptcy filing. By using a credit card responsibly, you can help rebuild your credit score and then qualify for loans or higher-limit credit cards. In order to reap all the benefits of any attempts to rebuild your credit, it is essential that you not incur more debt than you can reasonably pay off in a timely fashion. At Chang & Diamond, APC, our lawyers can help you take steps to re-establish your credit after declaring bankruptcy.

If you would like more information about bankruptcy and how it may impact your credit, contact credit repair attorneys at Chang & Diamond today to schedule a free consultation to discuss your case.

Establishing Credit after Chapter 7

Under the terms of Chapter 7 bankruptcy, the court can order you to surrender real property and personal property it believes are non-essential luxury items so that you can make payments to your creditors. Assuming this cancels out most or all of your debt, if you are able to keep current on your monthly mortgage or rent payments, you might qualify for a credit card in a relatively short amount of time. Once you qualify for a reduced-limit credit card, you can control spending and pay down the balance each month. Doing so will strength your credit and enable you to increase your credit score.

Establishing Credit after Chapter 13

Chapter 13 bankruptcy allows you to reorganize your debt and pay 80%-100% of it off over a 3-5 year period of time. As a result, most people filing for Chapter 13 can keep their home, assuming they remain current on their payments. If you are able to adhere to the terms of your debt reorganization and repayment plan, creditors will recognize your ability to make scheduled monthly payments in a responsible manner. Again, over time, you should be able to rebuild your credit and qualify for credit cards or small loans.

Contact Bankruptcy Attorneys at Chang & Diamond Today

Our attorneys have the knowledge and resources needed to help you file for bankruptcy and begin the process of re-establishing your credit. To schedule an appointment and learn how we can help you, contact bankruptcy lawyers at Chang & Diamond, APC today.

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