Rebuilding Credit After Bankruptcy

The words "debt relief" take on new meaning once you receive news that your debt discharge is complete at the conclusion of a Chapter 7 or Chapter 13 bankruptcy. Most or all of your consumer debts will likely be gone, perhaps for the first time in a very long time. You may sleep well for the first time in a long time — relieved of credit card bills, aggressive debt collection practices and creditor harassment. But now what? How will you recover and rebuild your credit?

When Our Law Firm Helps You Through Bankruptcy, We Also Advise You On Ways To Rebuild Credit

Bankruptcy clients of Brian D. Williams, Attorney at Law, are not left high and dry at the end of a case. Each client receives a personalized "in-service" session on managing finances wisely, rebuilding credit and preventing a repeat debt disaster. Brian D. Williams' background in accounting and economics helps him explain what consumers need to know to stay out of financial trouble after bankruptcy, such as:

  • If credit is too troublesome for you to manage well, deal in cash as much as possible. Nonetheless, to re-establish credit, it is important to prove that you can use credit and pay it off promptly.
  • Never use credit to supplement your income. A loan is not "extra money." Rather, it is a future liability.
  • Recognize that there are legitimate times when credit is useful and can be used wisely. Learn to know the difference between these times and reckless abuse of consumer credit. Use credit only to manage money in ways that build value in your life. A car loan for necessary transportation to work, a tuition payment agreement or a payment agreement to cover the unexpected (such as emergency dental work or plumbing repairs) are all legitimate uses of credit. Without your previous debts dragging you down, you can devote discretionary income to paying off debts such as these as soon as possible.
  • Know what to look for if you get a new credit card. Watch out for — and avoid — gimmicks such as enticing invitations to obtain cards with required deposits, account startup fees and high annual fees. It is worth your while to wait until you qualify for a credit card with terms that keep you in charge.

Call Us Or Come Into The Office | Request A Consultation With No Further Obligation

Spring, Texas-based lawyer Brian D. Williams knows that there is no magic once a debtor has a clean slate. On the contrary, adopting new saving, spending and borrowing habits can work wonders. Living within your means can empower you and allow you to build up savings — the best sign of financial health.

To discuss credit repair and rebuilding credit after bankruptcy, call 832-717-1717 or email us and schedule a consultation.

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We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.