After bankruptcy · Beverly Hills
Rebuilding Credit After Bankruptcy in Beverly Hills
Rebuilding credit after bankruptcy in Beverly Hills starts the day you get your discharge, and many people see their scores improve within the first year or two. If you are worried about what filing will do to your credit, call (310) 362-9071 for a free consultation.
- Chapter 7: up to 10 years on credit reports
- Chapter 13: up to 7 years
- Its effect on your score fades over time
Why credit often improves after a discharge
Many people come to us with scores already hurt by late payments, collections and judgments. A discharge removes those debts, lowers what you owe compared to your income and stops new late payments. That gives you a clean base to build on.
Steps to rebuild after your case
- Check all three credit reports. About a month or two after discharge, pull your reports from Equifax, Experian and TransUnion.
- Fix the errors. Each discharged debt should show a zero balance and "included in bankruptcy." Dispute any that still show money owed.
- Open one secured card. Use it for small purchases and pay it in full every month.
- Pay every bill on time. Payment history is the biggest part of most scores.
- Keep balances low. Use a small part of your available credit.
- Save an emergency fund. Even a small cushion keeps you from new debt.
Cost and timeline
We explain credit rebuilding to every client as part of the case, at no added cost. Our flat fees start at $1,200 plus the court filing fee.
The bankruptcy stays on your report for up to 7 or 10 years, but most lenders look hardest at the last two years. Some government-backed mortgage programs allow a new home loan a few years after discharge.
After your case in Los Angeles
Your discharge order comes from the Los Angeles Division of the U.S. Bankruptcy Court, Central District of California. Keep a copy. Lenders, landlords and credit bureaus sometimes ask for it, and it is the fastest proof when a creditor reports a debt incorrectly.
If a creditor keeps reporting a discharged debt as owed, or tries to collect it, the bankruptcy court can step in. Save the report and any letters.
Mistakes to avoid
- Paying for credit repair. You can dispute errors yourself for free.
- Taking high-cost offers right after discharge. Mail offers often carry high fees.
- Co-signing for someone else. Their late payments become yours.
- Losing your discharge papers. Keep them with your important documents.
Related services
If you kept a car loan, read about reaffirmation agreements in Beverly Hills. If student loans are still on your report, see student loan discharge.
More on choosing a chapter
- Chapter 7 or Chapter 13: Which One Fits You
- When You Should Not File Bankruptcy
- What Goes Wrong in a Cheap Bankruptcy Filing
- Rebuilding credit after bankruptcy
Credit rebuilding questions
How long does bankruptcy stay on my credit report?
Bankruptcy stays on your credit report for up to 10 years after a Chapter 7 filing and up to 7 years after Chapter 13. Its effect on your score lessens as time passes and new positive history builds.
Can I get a credit card after bankruptcy?
Yes, you can usually get a credit card after bankruptcy, often a secured card at first. Using it lightly and paying in full each month helps rebuild your score.
Can I buy a house after bankruptcy?
Yes, many people buy a house after bankruptcy. Loan programs have waiting periods after discharge, and lenders look at your credit and income since the case.
What if a discharged debt still shows as owed?
If a discharged debt still shows as owed, dispute it with the credit bureau and include your discharge order. If the creditor will not correct it, contact us.
Free consultation
Plan your fresh start
Call (310) 362-9071 or send the form. We will explain what your credit should look like after the case.
Law Offices of John Asuncion9454 Wilshire Blvd., Penthouse Floor
Beverly Hills, CA 90212
(310) 362-9071
Monday to Friday, 9 a.m. to 6 p.m.