How to Recover From Chapter 13 Bankruptcy

Chapter 13 bankruptcy is a process that can help you pay off your debts through the use of a payment plan set up by the courts. While it can be a beneficial process for helping you eliminate your debt, it can wreak havoc on your credit score. After going through Chapter 13 bankruptcy, you may have trouble getting approved for financing. There are some steps that you can take to help rebuild your credit rating.

Instructions

1

Get a copy of your credit report for review. You are entitled to one free copy per year, which can be obtained from one of the three major credit bureaus: Equifax, Transunion or Experian. According to the credit bureaus, accounts are often incorrectly reported, so the credit report could say that your accounts are overdue. If this is the case, you need to contact the credit bureaus and let them know that those accounts were included in your bankruptcy plan. You should periodically review your credit report so you can scan it for mistakes.

2

Obtain a secured credit card from a credit card company. It may seem that using a credit card could hurt you financially, but it is actually one of the best tools for rebuilding credit. Getting an unsecured card would be ideal, but if you are unable to qualify, you should be able to get a secured card with collateral. When you make purchases and then pay your bill on time, the credit card company reports this to the credit bureaus which strengthens your rating.

3

Make all of your payments on time or before the due date. When you are trying to rebuild your credit, making timely payments is one of the most important things you can do. This applies not only to debt payments on your credit card but to utilities, car payments and any other type of payment that you have. Even if you cannot afford to pay your entire balance off each month, you need to make the minimum payment on time.