A ruined credit history most possibly paralyzes the debtors borrowing rights. Hence after bankruptcy repairing the bad credit is the need of the hour. But the debtor needs to realize that things cannot be changed as fast as he thinks. He may bring about the change gradually in a systematic and planned manner. The result and success of the credit repair process depends on the debtors understanding and analyzes on the credit repair programs.
As soon as the bankruptcy is completed the debtor should follow the following steps
Ensure that his credit report is error less. To make sure this he need to collect the credit reports from the three credit bureaus and so a thorough analysis. If errors found report it to the agencies and get it rectified immediately.
Applying for new credit cards and properly managing them. The debtor should not end up in applying for numerous cards post bankruptcy. As this would again cause him trouble as all the bankers would clearly reject the application and this might also leave a mark in the debtor’s credit report. While applying for the credit card the debtor may also give a foot note in his credit report, highlighting the reasons for his bankruptcy filing and ensure that the report reflects the discharge of the bankruptcy.
It is necessary for the debtor to fix his credit scores after bankruptcy because he might avail loans in the near future. Also this fixation would help the debtor in reducing the challenges a discharged bankrupt person would face in the future when he tries to rise from the devastation. As the credit repair procedure is a time consuming one, it is always better for the debtor to start fixing immediately after the discharge. Credit fixing always reduces the rates of finance that the debtor might avail in the future. Once the credit is fixed the debtor have the chances of enjoying the benefits of various other credit products such as cash back, insurance and making overseas transactions. The bank would also provide normal personal current account and business account to the debtors whose credit record is fixed. The debtor can enter into medical insurance and other emergency contracts only if his credit record is repaired.
Removing of bankruptcy from the debtor credit report is impossible. Many agencies offer to do this for attractive prices. The debtor should have awareness about this and should not get deceived by these advertisements. As per bankruptcy law the bankruptcy discharge will remain in the debtor’s credit report for approximately 5-6 years. This cannot be curbed but the effect of it can be slowly reduced.
If the debtor has any bankruptcy restrictions rule then this would ultimately affect his credit repair process. After bankruptcy, the debtor should not miss any payments or fail to make payment on any outstanding bills. If it happens, then the process fixing credit record would become a great disaster. The debtor would end up paying increased interest rates causing considerable damage to the credit scores.
