» Rebuilding Credit After Chapter 13 Begins With Careful Credit Card Choices

Rebuilding Credit After Chapter 13 Begins With Careful Credit Card Choices

Des Moines, IA (Law Firm Newswire) October 10, 2012 – For those who have declared Chapter 13 bankruptcy, rebuilding credit is similar to a Chapter 7 bankruptcy.

It does not matter which Chapter someone files under when it involves rebuilding their credit. The discharge, or conclusion of the bankruptcy process, is much the same in each instance. The first step for a discharged debtor is to get their name back into credit reporting data bases, with a notation that shows on time payments over a period of time. It is not complicated. It just takes work on the part of the debtor to turn their credit report around from a negative, to a positive report, and reclaim lost points indicated Kevin Ahrenholz, an Iowa bankruptcy lawyer.

The quickest way to make an impression is to apply for a credit card with a very low limit, which may be as low as $200. The next step is to prepay it outright, agree to prepay it or offer a deposit upfront. Use the card and ensure all payments are made on time, every month, without exception. If the debtor establishes a regular routine that demonstrates their reliability in paying bills, when a creditor accesses their credit rating, they will see a consistent effort to stay current with bills, even in spite of bankruptcy issues in the past.

Rebuilding credit is not the issue, because it can be done successfully. The issue is that the debtor needs to be consistent in paying all of their bills, without delay, every month, without excuses, stated Iowa bankruptcy lawyer Ahrenholz. By working on it over a period of time, their credit rating is restored, and while debtors think they will never get credit again, that is not the case.

There are many financial institutions willing to work with a debtor who shows that they are making an effort to be responsible about their bills and payments – even if they have declared bankruptcy. While the credit extended may not be what the debtor was once used to, it is a start; a new lease on new credit for their new debt-free life.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact an Iowa bankruptcy attorney, Iowa bankruptcy lawyer, or set up an appointment, visit http://www.iowachapter7.com or call 1.877.888.1766.

Kevin Ahrenholz
309 Court Ave., Suite 805
Des Moines, IA 50309
1.877.888.1766
Offices in Des Moines, Cedar Rapids, Waterloo, Mason City, and Vinton.


  • Consumers in debt need to be aware of a scam that is taking place in this country by offshore criminals in the Far East, perhaps India.  This may be some of the fallout from the disclosure of personal information at Target in recent weeks.  Anyone who used a credit card at Target between certain dates in November and December may be at risk for having their personal information accessed and provided to offshore criminals who perpetrate these scams. One such scam involves someone from the Far East with a thick accent placing a call to a consumer who might be […]
  • Debt May be Added After Bankruptcy is Filed Indicates Iowa Bankruptcy Lawyer
    When a debtor files for personal bankruptcy, it only addresses pre-bankruptcy debts. Some types of post-petition filing debt may be added later. There are two routes to declare personal bankruptcy: Chapter 7 and Chapter 13. Chapter 7 is a liquidation plan that sells your assets to pay creditors and Chapter 13 is a re-payment plan, with money paid to the trustee on a biweekly basis. Those funds are then paid to creditors. Chapter 7 and Chapter 13 cover all debts prior to filing. However, only some types of debt may be filed later. If you have hired a bankruptcy lawyer, […]
  • When the Debt Load is Too Much, Bankruptcy Protection May Be the Best Answer
    It’s always good to pay your debts, if you can keep up with them. But if your debt is simply overwhelming, it may be time to file for bankruptcy. These days the main trigger for someone filing for bankruptcy is that they have lost their job. There are other reasons which may lead to bankruptcy, such as health issues, divorce, death, poor business decisions, a bad economy, foreclosure and following bad advice. No matter what the reasons are that lead someone to file, the process for bankruptcy remains much the same for everyone. The differences lie in the circumstances that […]

See other news sources publishing this article. BETA | Tags: , , , , , , ,



Get headlines from Law Firm Newswire sent right to your inbox.

* indicates required