How easy is credit repair after a Chapter 7 or Chapter 13 bankruptcy?

Most San Diego bankruptcy attorneys would tell you that rebuilding credit is not as hard as it seems.

Think about it in the following scenario: You have a large debt and your payments are consistently missed or late. This would be incredibly damaging to your credit.

Now, assume the debt is wiped away clean after a Chapter 7 or Chapter 13 bankruptcy. If you can be diligent about your credit repair, you might be able to start fresh, says the Lansing State Journal.

The Journal makes the distinction, however, between the reasons why people file for bankruptcy. If the bankruptcy was due to changes in circumstances, such as an illness or job loss, then credit repair would be easier. If, however, the bankruptcy was due to bad habits such as compulsive spending or gambling, then credit repair would have to take into account a lifestyle change, as well.

It is also important to get a credit card shortly after declaring bankruptcy, even if the credit limit is low. The key is to pay it off each month. Avoid using a debit card, since it is not linked to your credit repair.

Another important thing to note- you need to monitor your credit report constantly, to make sure it is accurate. The Federal Trade Commission provides information on what to do if you find any inaccuracy on your credit report. The FTC also recommends credit counseling and urges debtors to develop a budget to assist them with their monthly finances.

The FTC warns against credit-repair scams. The only way to rebuild credit, says the FTC, is through time and a conscientious effort.