Rebounding from your Chapter 13 bankruptcy can be a trying ordeal. Undoubtedly your credit rating will have taken a ding or two in the bankruptcy process. It is in the nature of filing for bankruptcy, and it is unavoidable. Luckily, Chapter 13 bankruptcy offers some unique advantages that should put you in the driver’s seat with respect to your personal finances after emerging from Texas bankruptcy.
The biggest advantage of Chapter 13 Texas bankruptcy for rebuilding your credit is that, as a repayment plan, Chapter 13 takes three to five years to complete. This means that, simply by way of following your Chapter 13 bankruptcy repayment plan, you will have learned how to better budget your income and balance your expenses to make payments on time over the last three to five years. That experience will prove invaluable as you emerge from Texas bankruptcy into your new, free, financial life.
A simple way many people begin building or rebuilding credit is by obtaining a secured credit card. This is a card with a fixed credit limit that you obtain by putting down a cash deposit against the credit line; so, for example, if you put up a $300 deposit, your credit limit will be $300. This is a good way to build a history of using credit and then paying off the credit card bill each month, which slowly raises your score. Be sure that the secured credit card is reported to credit reporting agencies, and that it is not listed as ‘secured’ in the reports. After Chapter 13 Texas bankruptcy this could be a great option to get you back on the road to good credit.