East Orange: 973-677-9000
Paterson: 973-247-9445
Jersey City: 201-659-6226
Toll Free: 888-827-5493
FREE Initial
Consultation Se Habla Espanol
Go to Practice Area Categories

How soon can you start rebuilding credit after bankruptcy?

If you have been struggling with credit card payments, home mortgage or auto loans, or other types of debts, the protections offered by a Chapter 7 or Chapter 13 bankruptcy filing might warrant a second look.

For starters, the automatic stay will immediately require creditors to stop their aggressive collection tactics. During that safe harbor, the bankruptcy trustee will review a debtor’s assets, income and liabilities to obtain a complete picture of his or her financial health. The filer's debt obligations will be prioritized, and the completion of either the Chapter 7 or Chapter 13 will hopefully result in many debts being discharged or paid off. 

Yet our law firm emphasizes that bankruptcy is not only about obtaining relief from unmanageable debt struggles, but starting over with smarter and better habits. First of all, unpaid bills and over account balances probably meant that a debtor had an unflattering credit-to-debt ratio. The ratio is calculated by dividing the amount of debt an individual has used by his or her available credit. The resulting figure is a consumer’s debt load.

After the completion of a Chapter 7 or Chapter 13 filing, many or most of those overdue accounts may have been discharged. That means that a filer’s debt load may once again be low. To start rebuilding one’s credit, it may be a good idea to keep one of those accounts open, using it only to accrue small debts that can be paid off in full each month. That positive payment history will go a long way toward raising one’s credit score and becoming a more attractive candidate for new loans. 

Source: Credit.com, “How to Get a Loan After Bankruptcy,” Jeanine Skowronski, Jan. 22, 2016

No Comments

Leave a comment
Comment Information


Tell Us About Your Case

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.



  • NACBA | National Association of Consumer Bankruptcy Attorneys
  • NACA | National Association of Consumer Advocates
Review Us
Goldman & Beslow, LLC

Goldman & Beslow, LLC is a Federal Debt Relief Agency by an Act of Congress. We have proudly assisted consumers seeking relief under the U.S. Bankruptcy Code for over 38 years.

FindLaw Network

qr code

7 Glenwood Avenue,
Suite 311B
East Orange, NJ 07017
East Orange Law Office

Phone: 973-414-8069
Phone: 973-419-7631
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
Fax: 973-675-5886
E-mail the firm

NEWARK OFFICE 168 Bloomfield Avenue
Newark, NJ 07104
Newark Law Office

Phone: 973-483-1333
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
E-mail the firm

PATERSON OFFICE 100 Hamilton Plaza,
Suite 405
Paterson, NJ 07510
Paterson Law Office

Phone: 973-247-9445
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
E-mail the firm

JERSEY CITY OFFICE 26 Journal Square,
Suite 603
Jersey City, NJ 07306
Jersey City Law Office

Phone: 201-659-6226
Phone: 973-419-5266
Phone: 201-205-2496
Toll Free: 888-827-5493
E-mail the firm

Back to Top