There are many misconceptions about bankruptcy law.
Eight years after the law was revised, many people are still under the impression that the requirements may be too difficult for them to meet.
When you talk with a consumer bankruptcy attorney, however, you will better understand the big picture. It’s true that the law, as amended in 2005, has a few more hoops to jump through, such as a means test and credit counseling.
But for most people genuinely in need of debt relief, these hoops are not really high hurdles.
Another misconception is that a bankruptcy filing will make it overly hard to get credit after the bankruptcy. To be sure, bankruptcy does typically cause credit ratings to take a short-term hit.
Keep in mind, though, that it genuinely possible to repair your credit rating substantially after that initial hit. This post will discuss some of the ways to begin doing that.
For starters, make sure you review your credit report thoroughly. Get copies from each of the three major credit bureaus: Experian, TransUnion and Equifax. Under federal law, you are entitled to one free copy from each agency per year.
Far too often, data errors occur in these reports. If a debt has been discharged, it should not keep appearing on the reports indefinitely.
Another step to take is to apply for a major credit card, if you don’t have one. Naturally, it will be important to pay off the balance each month. But do try to get the card and use it carefully.
Source: “7 Credit tips for after bankruptcy,” MSN Money, 4-12-12