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Bankruptcy and Your Credit Score

 Posted on August 28, 2013 in San Antonio Bankruptcy Attorney

Pam San Antonio bankruptcy attorneyBankruptcy is a personal choice that may or may not be the best solution for everyone. However for many Texas residents, filing bankruptcy offers a way to overcome insurmountable debt. Nonetheless, it's no secret that your credit score will be affected if you file bankruptcy. According to, there are at least five steps that one can take to rebuild credit after bankruptcy.

Erase the Guilt

This isn't to say that your credit score will be low forever. Rebuilding your credit is a process and bankruptcy is viewed by many as a fresh start. The first step to rebuilding your credit is giving up guilt or shame. According to the Wall Street Journal people who filed for bankruptcy protection rose 9% in 2010. That number has increased since then. So avoid the negative self chatter and replace it with thoughts that you are doing what's best for you.

Soul Searching

Taking an assessment of your financial situation and how you got here is a good way to avoid repeating the same behaviors. Being honest with yourself will only help you progress to a better place financially.

Create a Plan

Create a budget that will allow you to pay off existing bills. Practice makes perfect. Being mindful of the behaviors that may have led to overwhelming debt can help you not repeat the past. Creating a budget will afford you those necessities and help to avoid spending pitfalls.

Pay Bills on Time

Make sure to pay your existing bills in a timely manner. This is especially important for your rent as rent payments are tracked by credit agencies. Set up automatic bill pay if possible to make certain that bills are paid on time.

Secured Credit

Open a secured line of credit to help rebuild your credit. You will  first deposit a certain amount and this is collateral for your line of credit. By making small purchases and repaying them on time each month, your good payment history will help rebuild your credit.

Don't face bankruptcy in Texas alone. Contact an experienced San Antonio bankruptcy attorney today.

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