Persels & Associates Gives Tips on How to Establish Good Credit After Filing for Bankruptcy

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Life After Bankruptcy – Establishing Good Credit

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The bankruptcy lawyers at Persels and Associates are committed to helping people file for bankruptcy, creating a new opportunity in life and a clean slate for the future, without the weight of preexisting debt.

Persels & Associates works with people who are making the difficult decision to file bankruptcy. Often, consumers feel dejected and ashamed about having to file. But the lawyers at Persels & Associates want consumers to know there is life after bankruptcy.

“The bankruptcy lawyers at Persels and Associates are committed to helping people file for bankruptcy, creating a new opportunity in life and a clean slate for the future, without the weight of preexisting debt," said Joe Cosentini, from Persels & Associates.

“Filing for bankruptcy no longer has a negative stigma. We understand the needs and circumstances of those who are unfortunately in debt. We are here to tell people that you are not alone- the recent and ongoing economic crisis has left many individuals in debt.”

With news reports saying that the big Wall Street financial institutions are beginning to turn their financial corners, people on Main Street wonder what life will begin to look like for them. Will there ever be cars, homes? Is the American dream over? We at Persels & Associates know that bankruptcy is not the end but a new beginning for people. Persels wants people to look at their financial circumstances and see if there is anything that can be done differently as they start their financial lives over. But once that’s done, we hope consumers do start over with a fresh understanding of what got them there so mistakes can be avoided. But eventually consumers will look to establish credit again.

Many folks are afraid to take on new credit. After all, it was credit that got them in trouble in the first place.

But not doing so can hurt consumers later on, particularly if they hope to take out a car loan or mortgage sometime in the future.

Here’s what consumers need to do following bankruptcy to get their credit back in order:

  •     Consumers first need to contact the credit reporting agencies to make sure that all of their accounts are listed in their credit reports as charged off or included in bankruptcy.
  •     For Chapter 7, they should show balances of zero.
  •     These accounts will remain on consumers reports for seven to ten years, but consumers can call creditors and ask them to stop reporting them to the bureaus.

Here’s the contact information for the credit bureaus that are required to give a one free credit report per year:

  •     Equifax 1-800-685-1111 - you can get a free report if you have been denied credit in the last 60 days. Make sure that you order only the credit report. They should mail it within 48 hours.
  •     TransUnion 1-800-916-8800 – you should receive your report within 6 to 8 business days.
  •     Experian 1-888-397-3742 – you should receive your report within 8 to 10 business days.

Credit-card companies might not be sending offers for credit once they see the bankruptcy a consumers credit report, but consumers can get a secured credit card, which is a regular credit card backed by a security deposit with the bank. Consumers should know that secured credit cards usually carry an annual fee and higher interest rates.

Consumers can try practice spending with a debit card with the MasterCard or Visa logo. It’s a good way to test those hard earned new financial skills.

Whatever the path, Persels & Associates knows that just like the auto industry and some of the big banks, folks on Main Street can turn their financial fortunes around.

About Persels & Associates
Persels & Associates, LLC, and its entities are pioneers in the field of offering "unbundled" legal services to individuals who cannot afford traditional legal services. As Americans credit debt rose, Persels & Associates bridged the "gap" between consumers and their debtors. Today, Persels & Associates employs over 150 lawyers in the 50 states and has 25 central office staff attorneys with over 40,000 clients. For more information, please visit http://www.perselsandassociates.com.

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Karen McGagh
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