3 Easy Steps to Rebuild Credit After Bankruptcy.
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- Опубліковано 30 чер 2024
- How to rebuild credit after bankruptcy. It isn't rocket science, and there is a literal ton of wrong information about rebuilding credit. You need only to (1) Repair, (2) Rebuild, and (3) Relax. This short and accessible video should help you understand the steps you need to take to rebuild credit after bankruptcy.
Matt Berkus is a Colorado licensed bankruptcy and debt relief attorney with 18 years of experience. I offer free phone consultations to residents of Colorado for the purpose of bankruptcy. Click on my websites for additional information and for the phone number to call and schedule.
My Websites.
mattberkus.com/
mattberkus.com/contact.html
www.personaltouchbankruptcy.com/
#bankruptcy, #chapter13 #chapter13bankruptcy, #bankruptcyattorney, #bankruptcylawyer #Creditafterbankruptcy
Thank you for this information
Thank you great video, short, precise, and to the point.
These are great post steps.
Thank you doe this!
Thank you sir this makes me feel a whole lot better
Thank you. I am glad you found the video helpful.
Appreciate the education & thanks Matt.👍🏼🙏🏼
Thank you for the positive feedback. It is encouraging.
Love this.
Thank you, you really relieved my stress
Glad to hear that!
Great ideas!!
I don't want anymore credit cards, after l finished my Chapter 13 plan. I want to lived a debt-free life.
That is a great goal.
@@bankruptcybailout Thanks.
Me too except for my home.
A tank of gas or two in 2022. LOL Seriously, this is a great video with very good information and nice delivery. Thank you.
LOL, that particular part of the video (tank of gas) didn't age well, :)
Having the toughest time getting approved for a secured credit card… even for those who claim that “no good credit is necessary” So FRUSTRATING!!!
Have you reviewed your credit report for errors and to see if all the old accounts are being properly recorded? I am assuming since you commented on this video that you filed bankruptcy. Sometimes it can take some time if a person's credit was total trash prior to the bankruptcy. However, usually the culprit for not being able to get a secured credit card is that all the accounts haven't been updated, or a spotty residence or income history.
Chime gave me a secured card within 2 months of my discharge
@@ghostmane2643 thanks I did get one THANK GOODNESS for companies like Chime who are actually out there to help people! 👌
I just getting ready to finish my process in the end so now I file to the court but before that I was already offered a secure discovery credit card is that good or not?
Don't apply for the credit card before your bankruptcy is filed. Wait until after your bankruptcy case is complete.
TY
Omggggg you are the best!!!!!!!!
Thanks for this video, could you make another one about getting credit if one was denied getting a secured cc please.
Frankly, I have never heard of anyone getting denied a secured credit card. I suppose if the person has no source of income or if there is an issue in verifying one's identity, those would be a reasons to be denied a secured credit card.
I was also denied a secured credit card. I have the "deposit" funds and was still denied.
Which card did you apply for? Try Capital one secured master card with $49 deposit to get $200 credit line. I started with that.
@@hhopkins2708 open sky and premier credit will approve it....both secured and premier is expensive but it does work well .I was able to but a used car in 18 months a 7.13 percent interest and my score is now 704.
My closed accounts still report as being included in chapter 7 bankruptcy on all 3 reports. Even though they were wrote off beforehand.
Although it is common for an account to be closed when it it is "charged off," that doesn't always happen. In any event, if you filed chapter 7 bankruptcy, then it isn't inaccurate for accounts to show as included in bankruptcy.
The case was closed on Feb 3rd and I got two unsecured cards from Capital one and Cerulean card but the limit is only $500 and $750
but they say it would be increased double six months later. Capital one is no annual fee but the Cerulean card wanted me to pay a $99 one-time fee. both of them were mail offers. however I gave up to buy a car because the interest rate is over 25 % .luckily, a lender didn't pick up my car yet so I still drive my car without a payment. I started building up my credit again. I think filing BK is not an end of the world. There are some positive things surely. one of the negative things discharged is not all free, CPA says I am gonna received 1099G from creditors, this meaning I have to pay income tax next year.
That is good to hear. I think you meant a 1099-C (not G). I doubt you will receive one but it sometimes happens. You won't have to pay any tax on the eliminated debt because the debt was discharged in bankruptcy. Debt discharged in bankruptcy is not subject to "forgiven debt income" tax.
@@bankruptcybailout Oh, OK. I will remember 1099 C and I appreciate about tax information it is really useful. probably
CPA guy needs to learn the bankrupt law too. actually, I have concerned about next year's income tax report. Thank you.
Markus
I received a chapter 7 discharge a year ago. Just received a 1099-C, so regarding form 982- you state that I should check box 1a, but do I also fill in line 2 with the "Total amount of discharged indebtedness...." as is listed on form 1099-C?
You will need to review the instructions for the form www.irs.gov/instructions/i982 or talk to a tax preparation professional.
What if I'm leasing a car?
What about keeping existing share secure loans prior to filing CH7? What happens to those?
1. You cannot pick which debts go into a bankruptcy. All debts go into a bankruptcy. 2. The debt as to the debtor in bankruptcy will still be noted as "included in bankruptcy" and they will stop reporting all activity even if you keep paying.
Hello there! I just get discharge chapter 7 so when can I apply Secure credit card?
If your bankruptcy has been discharged, you can apply for whatever you like. Whether the creditors will accept your application is a different question, but you may apply.
But when a CC company rejects my application, does that show up on my credit report? Should I apply Only to get a card that I Know will accept me or doesn’t it matter?
I filed in March of 2021; it was discharged in June of 2021. Haven't tried to get a cc until now. I tried to get a secured card and I've been denied twice even after being pre-approved. All the accounts that were included are showing closed and included in the bankruptcy. Most of the time the letter I get says something about previous balances or missed payments. Does going in person to a bank improve my odds any more than just applying online?
Do you know your current FICO score (the real one)? It has only been six months since your bankruptcy was discharged. I suspect you will be able to get approved in the coming months. I am not sure going in-person matters, underwriting decisions on small balance loans and credit cards are entirely automated anyway. So, the bank rep would just be submitting the application for you.
@@bankruptcybailout What do you mean by the real one? I can check my FICO score through discover. How should I find the real fico score?
Depending on what service you use to get your "score", it may not be the actual FICO score. You can go to the source.
Could you recommend a Bankruptcy Attorney in Utica, NY?
Thank you for asking, but I don't have personal knowledge or experience with any bankruptcy attorney in Utica, NY.
What if the closed acct prior to BK still shows a balance afterward it’s discharged
If the account was closed prior to the bankruptcy, then the account doesn't usually need to be updated after the bankruptcy. For active accounts, bankruptcy is the closing event. If the account is already closed before the bankruptcy, the bankruptcy doesn't change the credit reporting for that account. However, if it really is showing a balance due, then you should dispute that entry.
Hi, i recently filed ch 7. It was discharged August 2023. My credit report is showing a negative message, "3 missed payments or very delinquent accounts within the last 90 days".
I never had any late payments. I had 3 credit cards that were closed on my bankruptcy. They all show closed, paid on time, discharged within bankruptcy. No card shows a late payment.
Could that negative message be related to my bankruptcy?
Please excuse any typos. Having issues with my keyboard
Should I pay off my car first before I file ch.7 ? Or it doesn’t matter ? I plan on keeping it since I don’t owe much on it.
Generally, the best advice is to maintain the status quo and don't do anything different in the lead-up to bankruptcy. Paying off a car before a chapter 7 bankruptcy creates several issues. If you own your car free and clear, then you need to determine if your state's exemption can cover the value of the vehicle so it doesn't get taken by bankruptcy. Also, where is the money coming from to pay off the car? Hire an attorney for your bankruptcy and let him or her determine if it makes sense to pay off your car ahead of bankruptcy. Most of the time, it is not a good idea to do so.
@@bankruptcybailout thank you for the feedback Can an BK attorney give advice if I should file or not ? Like if it would benefit me in any way to file.
@@Enzo-tg8uo Of course. Although it is uncommon, I have advised prospective clients of other options if bankruptcy wasn't going to work or would put the person, in some manner, in a worse situation. Generally, by the time a person is first considering filing bankruptcy, they should have already filed bankruptcy 6-12 months ago. I can't speak for every attorney, but we do have an obligation to make sure you understand your options and what is and is not in your best interests. If bankruptcy is not right for you, a bankruptcy attorney will tell you.
@@bankruptcybailout Thank you. Right now I am undecided if filing is the best option considering I am 25 and this will stay on my credit report for 10 years. So my fears of never being able to own a home or qualify for credit cards for that long makes me wonder if I should just let the collection accounts on my report sit for another 6 years . Since most of my accounts are from 2018-2020 etc… or if by filing am wiping out the debt from my reports will help me in the long run vs still having them as unpaid debt
@Enzo94 That is not how credit works. Although the bankruptcy is on your credit report for 10 years, it doesn't affect your credit score for that long. You can get an FHA mortgage 2 years after bankruptcy. You can buy a car literally the day after your case is done. Waiting never works out. Eventually, you will get sued, there will be judgments, etc. Bankruptcy will actually help you improve your credit faster than waiting around and doing nothing.
What do you do if you can't get a card? I've applied for over 20.
Have you applied for a secured credit card? Also, are you actually post bankruptcy (and received a discharge), or just trying to rebuild trashed credit. If the latter, you will have problems. Also, if you have no income (or verifiable income), that can is a problem. I have been doing this for 20 years and have never had anyone report a problem getting a secured credit card after a successful chapter 7 bankruptcy.
@@bankruptcybailout Well I guess I'm the first one. I am 4 months post chapter 7 and have been denied from 21 SECURED cards.
Can I get a card while in chapter 13?
Strictly speaking, a debtor in chapter 13 is not supposed to incur new debt during the chapter 13 case. However, that doesn't mean you can't get a card assuming you can find a issuer willing to give you one. As a practical matter, many debtors in chapter 13 will get a credit card to help bridge gaps in expenses (and to help start rebuilding credit). Also, since the cards a debtor in chapter 13 will qualify for will usually have a low available balance (under $2,000), that small amount of credit is incidental to the bankruptcy. However, debtors should be cautious with debt while in chapter 13 so as not to jeopardize their chapter 13 plan payment.
Also can I get authorize to use from my daughters credit card
The credit scoring models no longer give much credence to authorized user status. You are better off getting your own credit card even if that means getting a sub-prime secured credit card.
I was added as authorized user and score went up 32 points
Can you explain why you say to only charge 10% please
There are a couple of credit scoring dividing lines when it comes to debt to available balance ratio. Your debt to balance ratio is how much you have charged relative to your total available balance. Your credit score factors that in. The lower your debt to balance ratio, the better for your score. 10% is the first line. The next line is 30%. Once you go over 30% debt to balance, your score begins to be negatively impacted. Although the 10% to 30% range doesn't hurt your credit score, it can keep it from improving.
In addition, within the context of this video, most credit cards one gets out of bankruptcy will have a low available balance, usually in the range of $500-$1500. So, 31% on a $500 card is only $155. So, it doesn't take much to cross the negative threshold. Focusing on 10% prevents that. Also, the person just emerged from bankruptcy. They should be trying to live their life without resort to unsecured debt (e.g., credit cards, etc.).
Lastly, 10% is easy to remember and easy to calculate. :)
What about getting a car afterwards
What about it. Go try and buy a car. You can get a car after a bankruptcy discharge. Granted, in the first year or two after your bankruptcy, you won't get very good terms on the loan, but you can get a car loan. If you need a car, buy a car. However, don't go finance a car just to try to pump up your credit score. It is that sort of thinking that leads to people needing bankruptcy.
Can SBA loan below $25k be included in chapter 7?
SBA loans, regardless of balance, are part of any bankruptcy. The issue with SBA loans is whether there is collateral. If there is collateral (i.e. the SBA loan is secured), then an analysis needs to take place to determine what happens.
@@bankruptcybailout thank you
why not try to get the bk removed like many credit repair channels say to do?
Assuming there is a legal basis to remove the bankruptcy, they can dispute it. However, the person's bankruptcy exists and is discoverable independent of a credit report (something credit repair scammers fail to mention). In addition, a bankruptcy credit report entry (the public record) is easily verified and can reappear on the credit report during the next reporting cycle.
Just throw the whole social security away
😅
"Spend a small amount on your card, a tank of gas or two". This video is clearly made before Biden.
LOL. right. However, I think the advice gets the point across to spend a relatively token amount that one can easily pay.
Thank you. I enjoyed your video. I have a question. I just got discharged from my chapter 13 yesterday. I reviewed my credit report and noticed that my car note had been listed as being a part of my bankruptcy which is not true because I did not include them and I make direct payments to them myself, not through the bankruptcy court. I called the bank about this and was told that even though I did not include them in the bankruptcy, they are a creditor and that's why they reported as a bankruptcy on my credit report. The report mentions that my account is closed and that I owe a $0 balance. This is not true, I still have a balance, make timely payments and will be finished with my payments by September of this year. I mentioned to the bank that this information is false and was told: "I'm sorry, but we cannot update your report to show that you make direct payments to us and even though you did not include us in the bankruptcy payments because we are your credits we have to report you as a bankruptcy." I feel this is wrong because like I said my account is still open with them and I'm still making direct payments to pay for my loan (which have not been late). Now it looks like I have 2 negative items on my credit report instead of just the bankruptcy. Can I do anything to fix this error?
Unfortunately, what the bank told you is mostly true. When you file bankruptcy, you create an estate. That estate contains ALL your debts regardless of your intent or what you actually do with the debt. So, in that sense, your car loan is "included in your bankruptcy." Understand, that your chapter 13 plan "elected" to pay your car loan directly. That makes it part of the chapter 13 plan. Just because the money didn't flow through the bankruptcy trustee doesn't mean the car loan wasn't part of your chapter 13 plan. In addition, credit reporting is voluntary. No law requires a lender to report your information to credit reporting agencies. The law only requires that if the lender chooses to report, the information be true and accurate.
You may still dispute the entry with the credit reporting agencies and see what happens. However, the car lender can report the account as "included in bankruptcy" and report a 0$ balance.