For many people, the term "bankruptcy" can be intimidating. If you're thinking about Chapter 7 or Chapter 13 bankruptcy, you probably have a lot of questions about our financial credit and how filing for bankruptcy will affect your future. Fortunately, bankruptcy is designed to give debtors a fresh, debt-free financial start; not permanently destroy their credit. In fact, you can start rebuilding your credit today.

Your financial record will reflect bankruptcy for seven to ten years after you file. During this time, you can begin rebuilding your credit by making prudent financial decisions.

1. Create a practical budget and stick to it. Creating a budget is one of the easiest ways to organize your money. If the idea of a budget sounds stressful and overwhelming, remember this: a budget is designed to help you know where your money goes every month. If necessary, you can adjust and adapt your budget as your needs change.
2. Pay your bills on time. It might sound simple, but paying your bills on time is one of the best ways to rebuild your credit. This includes credit card payments, rent, mortgage payments, utilities, etc. If your credit history shows that you paid your bills on time after filing for bankruptcy, you may be able to reestablish your financial reliability with potential lenders.
3. Find a credit card provider that will help you build credit. The term "secured credit card" refers to a credit card that allows the owner to deposit funds onto the card much like a bank account. In short, the owner pays the credit card before he / she actually spends the money. This type of card can help you rebuilt your credit.

Call Our Modesto Bankruptcy Lawyers at (209) 529-7406

If you're facing an overwhelming burden of debt, speak to a Modesto bankruptcy attorney from Scott Mitchell Law Offices. Our firm is dedicated to helping people overcome their debt, so call our office today or request a free case evaluation online.