Filing for bankruptcy can be burdensome and a bit frightening to anyone. Often times, this occurs when debts have become too large to feasibly manage. However, bankruptcy is a crucial step in restructuring and managing your debt. It does not indicate an end to any financial stability. It may also be thought of like a clean slate to make better decisions. Once you have declared bankruptcy, you may still be wondering what you should do to ensure a more financially secure future. In this phase, it is important to think about your credit—especially since bankruptcy can lower your score and greatly affect how creditors view you. During this phase, you should take advantage of the situation to build credit. The are many ways to rebuild and improve your credit standing. With the help of a professional bankruptcy lawyer, you can find a path towards re-establishing your credit that works with you.

At Los Angeles Bankruptcy Attorney, we know how important it is to rebuild your credit, and we know that is important to get your life on track as soon as possible. With our team of professional and highly experienced lawyers, we can aid you with building your credit after bankruptcy. Our firm specializes in bankruptcy and related cases. With our support, you can be sure that you will receive top-class guidance and expertise in the beginning to re-establish your financial future. You should not have to worry about going about this process on your own—we can and will help you should you need it.


Most people have heard of bankruptcy before and they may have a general idea about what it entails. However, it is vital to know the details and exactly what the process entails. Bankruptcy is a legal means through which you declare that you are financially unfit to pay off your debts, and it can provide a source of debt relief. Once you have filed a petition of bankruptcy, your case may be taken to court. There, a judge will look over the details of your situation. This would usually include your income, your assets, and any other means through which you could pay off the debts. Of course, there are various types of bankruptcy laws; however, they all can greatly affect your credit standing. With the help of a qualified lawyer, you can figure out what path is right for you.

It is crucial to know what you can and cannot handle financially. When it comes to the process of bankruptcy itself, there are key points to think about:

  • Do you need to discharge or reorganize your debts?
  • Do you lack the ability to reasonably repay your debts within 3-5 years?
  • What debts can be qualified for bankruptcy?
  • Do you have a plan to repay your debts if you choose to restructure?

There are multiple types of bankruptcy solutions that depend on your financial situation. If you seek to discharge or eliminate your debts, then you may file for Chapter 7 bankruptcy. For this case, it must be shown that you are unable to pay back your debt within reasonable means. If you seek to reorganize or restructure your debts, you may file for either Chapter 10 or Chapter 11 bankruptcy. Of course, each case may vary depending on your situation. A bankruptcy lawyer will help you determine what is right for you and guide you through the proper steps.

After filing for bankruptcy, you will be protected under an automatic stay. This means that creditors cannot contact you through any means other than the bankruptcy proceeding itself to try and collect your debts. Even though filing for bankruptcy may allow you to recuperate from debts, it can still negatively affect your credit for years.

Bankruptcy & Your Credit Standing

One of the most important of your financial profile is your credit standing. Creditors will always look at this number when you work with them. Credit indicates whether or not you have a good history with making payments. Bad credit may indicate that you have had previous difficulties with making payments, and creditors may refuse to allow a purchase to go through if the number is low. Just think of credit as a sort of financial trust between you and a creditor. Obviously, if the number indicates that you are trustworthy, creditors will be assured that you will make payments and on time. Bad credit will worry creditors about working with you since they may have little trust.

A good credit standing can be easy to lose if you make mistakes; however, it can be rebuilt. The rebuilding process does take longer. Often times, an individual credit score will fall if they fail to pay their bills on time, defaulting on payments, defaulting on a loan, being charged off an account, maxed out credit cards, foreclosure, and more. Another major action that will lower your credit score is declaring bankruptcy.

Most people choose not to file for bankruptcy because of the negative impact it may have on a credit score. Not only can bankruptcy significantly reduce your credit score, but it will also appear on your credit report for up to ten (10) years depending on your situation. Of course, not filing for bankruptcy would have negatively impacted your credit score as well since bankruptcy indicates that you are unable to make your payments. By choosing this means of action, you may actually improve on your score considering the situation that leads to it. If your debts have been discharged, then it gives you a chance to re-establish a good credit standing.

It is crucial in the post-bankruptcy to think about how you can take advantage of your situation to establish a good credit standing. There are several means through which you can make this happen.

How to Build Credit

Filing for bankruptcy may provide a clean slate; however, it does have a couple of setbacks. Mainly, this includes negatively affecting your credit score and staying on your credit report for up to ten (10) years. So, once you have gone through the proper proceedings, you may find yourself labeled with bad or fair credit which can make it difficult to make future purchases. If you want to want to establish a good credit standing after declaring bankruptcy, it is crucial to begin as soon as you file a petition for bankruptcy. The quicker you begin building good credit, the quicker you can get towards financial stability. Also, you may seek the assistance of a proper lawyer to help guide you in this process and to determine what next steps you should take.

Once you are in the post-bankruptcy phase, you need to rebuild trust, or credit, with creditors in order to move forward successfully. A couple of steps you may choose to take while rebuilding your credit include, but are not limited to:

  • Budgeting
  • Paying bills on time
  • Getting a secure credit card
  • Getting a retail or gas card

These are methods through which you may rebuild trust with creditors. These actions will display financial responsibility if done in the correct way. Even though these just represent several methods of rebuilding credit, they are major ways to do so. If you are not sure about which route to take when figuring out how to rebuild your credit, a lawyer may be able to help. They look at your financial details and provide insight into what will and will not work best for you. Everyone’s situation is different, especially after a bankruptcy. There is no need to feel ashamed about asking for help during such unstable times. Obviously, most people who have filed for bankruptcy have never done so before; thus, they would need help in determining how the proper means to recover and what actions to take to do so.


Budgeting is a big topic when it comes to your figuring out and maintaining your finances. It simply means determining what you spend, how much you spend, and what you save. Budgeting, especially in the post-bankruptcy phase, means making sure that you limit yourself to spending on the essentials. For example, this can include your rent payments, food, transportation means, utilities, and other necessary expenses. By doing this, you should put the rest of the money you make into savings to ensure that you can make future payments. This extra money will be used to rebuild your credit.

Paying Bills on Time

Low credit scores and bankruptcy cases are often the results of being unable to pay your bills and debts on time. Once your debts have been discharged or restructured, you should take advantage of the situation and plan out your bill payments. Obviously, this can go along with budgeting. You may also set up a schedule, set up automatic payments, or set reminders about upcoming payments. Think of bankruptcy as a clean slate that will allow to start over with your bills and maintain better control over your finances. Again, by paying bills on time, you can begin to rebuild your trust with any creditor. You do not want to fall back into a situation like the one that led you into bankruptcy in the first place.

Secure Credit Cards

Another method of re-establishing a good credit standing is getting and maintaining a secure credit card. Secure credit cards are similar to but differ from debit cards. For these types of cards, you need to put down a cash security deposit. Often, these cards are specifically targeted towards individuals with bad credit.

When you open an account with a secure credit card, you need to put down a cash security deposit and the amount you put down will be your limit. For example, if you put down a deposit of $1,000 on the card, then you may only spend up to $1,000 with the card. This means that if you do not make a payment on the card, the card issuer can just take the money you owe of the deposit. This reduces the risk involved in credit card situations—and it is especially good for individuals with bad or no credit. It also may show financial responsibility for future creditors.

Once you are able to maintain payments on this type of card, and the issuer does not have to take the money out of the deposit, then you may be upgraded to an unsecured card. This is similar to a regular credit card. If an issuer upgrades you to an unsecured credit card, then it means that you have built enough credit, or trust, with the issuer. This is a good sign in terms of re-establishing your credit. Also, you may receive your deposit back after a certain point in time.

Retail or Gas Cards

Retail and gas cards are often easier to be approved for despite what your credit may be. This is great for individuals who have bad credit due to filing for bankruptcy. Usually, these types of cards may be used as credit cards and they may offer certain discounts and/or benefits to the cardholder. Also, with something like a gas card, they may be used exclusively for gas. Often, these cards are restricted in their use and can only be used in specific locations for specific purposes. This perfect for individuals with bad credit since they would build credit by spending on a necessity like gas for transportation.

Even though these types of cards can be riskier for those with bad credit, they may prove to be useful in re-establishing a good credit standing. By using a card to pay for necessities, you can maintain a specific budget goal which will be good in the long run.

How a Lawyer Can Help You Build Credit

After filing for bankruptcy, you may be left feeling unsure of what to do next and how to move forward to ensure a better financial future. You may be worried about your credit and how it will affect you. However, you do not have to go through this on your own. Not only can a lawyer assist you with filing for bankruptcy and the related proceeding, but they may also aid you in re-establishing your credit standing. A proper lawyer may counsel you on credit repair on counseling services and ensure that they are ethical and legitimate.

A lawyer may be hired during bankruptcy proceedings to ensure that you are following the right steps and that your rights are protected during the process. In the post-bankruptcy phase, you may wish to use the same attorney that assisted you with your bankruptcy cases, or you may wish to find another lawyer to help in this phase. Rather than use a credit repair service, a lawyer may be a better option to ensure the process is done lawfully, ethically, and professionally. Also, a lawyer will sit down with you and inform you about your options honestly. You may also tell them about what you think you can and cannot handle in terms of finances.

After a bankruptcy, a lawyer will help to ensure that you get back on track with your finances. This will do this by looking at your debts, your financial history, your assets, and your income. By analyzing this information, a lawyer will create a sort of plan that you may follow to build your credit. They will inform you of what credit building option best suit your needs. This presents a more personalized approach to credit building that you may not receive with agencies. Also, this may be a way to away any scams that may arise from credit building agencies or ads.

Locating a Bankruptcy Attorney Near Me

At Los Angeles Bankruptcy Attorney, we know that filing for bankruptcy can be stressful and overwhelming. Often, it can lead to thoughts of failure and hopelessness. However, this should not be the case. Bankruptcy is just a means through which you can figure out how to go forward in your life. Even after bankruptcy, you may still be unsure of what to do. Your goal after bankruptcy should be rebuilding your credit to ensure a better financial future. With the help of a qualified and professional lawyer, you can go through the options available for building credit. There are multiple ways that you can improve your credit standing as described above.

Our team of lawyers can help guide you along the way. With their experience and their expertise, they can discuss what your best path is and what to do after you have filed for bankruptcy. As experts in this field, they understand your situation and how unsure you must feel. Please do not hesitate to contact our Los Angeles Bankruptcy Attorney at 424-285-5525 to discuss any troubles related to bankruptcy. You should not have to worry about your future after bankruptcy. With us, you can be sure that you are dealing with lawyers who are reliable and honest. Our team will be with you every step of the way to ensure success. They will also ensure to find the best path for you.