Articles Posted in Credit Score – Repair and Rebuild

Credit Score – Repair and Rebuild. This is not only a very important topic but a widely misunderstood one in regards to how bankruptcy affects your score and how to rebuild and repair your credit score after filing.  There is so much misinformation out there and flat out lies it is unreal. In this category of our blog, we will answer many questions about your credit score and how it is impacted by bankruptcy.  Yes there is an initially negative impact to your score – anywhere from 30-50 points.  BUT – you can rebuild that score within 12-18 months. Usually if you are considering bankruptcy, your credit score has already been taking hits due to late payments, maxed out credit cards, pending foreclosure, lawsuits, debt collector reporting, etc.  If you know you are headed down the road of bankruptcy, the sooner you regain control, the better to your score. You are hit for each late payment, each credit card whose balance is over 30% of its limit, pending foreclosure action, repossession, debt collections – so if you catch your situation prior to these things happening for months – all hitting your score in a negative way – the hit from bankruptcy is not as bad. Think about it –  don’t get hit 5 times for the same debt issue because you’re trying to avoid the one thing that could help you recover – bankruptcy! Credit Score – Repair and Rebuild it quickly, regardless of where it is at when you file bankruptcy.  Check out these articles and see how to regain control over your credit score.

credit score rangeCan you get credit after filing bankruptcy? Absolutely.  Will you have to wait for ten years to get a house or a car?  Absolutely not.

Credit card companies will pack your mailbox with offers of credit.  They want you back in the system using credit cards and carrying a large balance. It’s a temptation that few can resist. These cards and offers will be from lenders that will charge high interest rates.  The same goes for cars and trucks.  There are numerous companies that will be glad to give you credit.  For a while, the question will be about how much interest they will charge you for that credit, which will be high until you’ve regained your footing.

Now, you shouldn’t run out and start charging up credit bills again, but if you need a vehicle or furniture and appliances you will be able to get credit. National creditors see people who file bankruptcy as a good credit risk since all their debts were wiped out, they can’t file Chapter 7 again for eight years and they have money to spend.  Many Mississippi bankruptcy filers are able to reestablish their credit within one year of their bankruptcy discharge.

wedding ringsMississippi is not a community property state and in most cases, a husband and wife are not responsible for each other’s debts. There are some exceptions, but they usually would only come up in a divorce or action between the husband and wife, not in a situation between the husband or wife and a creditor. A bankruptcy filed by one spouse should not affect the credit of the other spouse because that spouse did not file bankruptcy. The spouse’s name and Social Security number would not be listed on the bankruptcy papers of the other.

If there are joint credit cards or other joint debts then the spouse that did not file would still owe the debts. Otherwise, if the debt is just in the name of the spouse filing for bankruptcy, creditors would not even know the other spouse exists.

Bankruptcy law allows a married couple to file together, but they are not required to do so. Either husband or wife can file by themselves, or not file, or even file two different types of bankruptcy at the same time. Your spouse may not need to file bankruptcy at all or one spouse may need to file a chapter 7 and the other may need to file a chapter 13. You are allowed to file a bankruptcy by yourself and wipe out the debts you can discharge. You have several options!

The end of the year is a time when we start thinking about how the past year has gone, what went wrong, what went right, and what changes we need to make to ensure things are better in the new year.  When you are looking at your financial situation, it’s good to pull a credit report to double check what’s being reported to ensure it is accurate information.  As a part of the Federal Fair and Accurate Credit Transactions (FACT) Act, every US resident is eligible to receive one FREE credit report every 12 months from each of the nationwide credit reporting companies.

To learn more about this visit the FACT Act Central Site located at  Any other site offering you a free credit report is a scam or a selling tool to get you hooked into monthly fees.  Do not contact the three nationwide credit reporting agencies for your free reports. They are only providing them through the following three methods:

  1. Order online at

The Fair Credit Reporting Act (FCRA) provides specific rights to consumers who are or believe they are the victim of identity theft. If someone uses your name, Social Security number, date of birth, or other identification without the authority to do so in order to commit fraud, it is considered Identify Theft.  For example, if someone used your personal information to get a loan or to get a credit card, they may have committed identity theft.

Here is a short summary of these rights that were designed to help you recover:

  1. You have the right to ask that nationwide consumer reporting agencies place “fraud alerts” in your file to let potential creditors and others know that you may be a victim of identity theft.

This is a question that comes up at every conference I have with individuals considering debt relief.  It is a natural question since very few of us could obtain a house or car without access to credit.

Credit Bureaus are allowed to report a bankruptcy filing for ten years.  That fact that  a bankruptcy is recorded on your credit report doesn’t mean you will never be able to buy a house and a new car or truck.  Bankruptcy does not carry the same tarnish today that it carried in the days of your grandparents.

One of the primary temptations facing people who file for debt relief is the flood of new credit cards they are offered after filing for Chapter 7.  You will not have to wait years and years to build up your credit rating or to obtain new credit.

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