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Bankruptcy Law Network – Article by Karen Oakes

One of the concerns about filing for bankruptcy is that those folks will never be able to obtain credit again after filing for bankruptcy protection and assistance. Most times, nothing could be further from the truth as bankruptcy may actually improve folks’ credit score, according to Smart Money . Every debt collection note on a credit report, every late payment, every negative notation affects a debtor’s credit score.

Bankruptcy? It doesn’t add to the negative credit score; it replaces a number of negatives with ONE negative notation of “discharged in bankruptcy” with the account showing a “zero” balance. That act usually improves a debtor’s credit score.

There are a number of other ways to improve your credit score.

  1. After your bankruptcy is discharged, check your credit report for errors
  2. Check your report again
  3. Make a budget and stick to it
  4. Be careful when applying for new credit
  5. Use the automatic payment function on credit so that you won’t (ever) forget to make a payment
  6. If you have student loans, make SURE you make those payments on time (this will help rebuild your credit)
  7. Apply for a secured credit card (where you deposit money against future charges)
  8. When you do obtain new credit (and you will), do NOT max out the cards. Credit rating is affected by the amount of credit available ratio to credit used.

Using the above tips, a diligent debtor will find that even a mortgage is obtainable quickly after filing for bankruptcy. Folks who educate themselves about the ways to protect themselves and who act wisely will find that their credit score improves rapidly.

Carolyn Secor is a Clearwater bankruptcy attorney and Clearwater foreclosure attorney serving Palm Harbor, New Port Richey, Oldsmar, Tarpon Springs, Seminole, St. Petersburg, and the Tampa Bay area.

If you would like more information on our practice, please consult our website at or call 727-335-7151.