Bankruptcy Lawyer's Advice for Rebuilding Credit

[dasmom]

Ten Steps To Re-Building Credit After Bankruptcy

1.Open a checking or savings account.

2.Pay your bills automatically from your checking account each month so that you can always be sure to remain current with new obligations.

3.Ask your employer to take 10% of your pay check and deposit it into your savings account. This will help you save for emergency expenses.

4.Once you have saved up three (3) month’s worth of salary in your savings account, ask your bank for a secured loan against the account. Pay the entire loan back on time so it is reflected as a positive mark on your credit report.

5.Pay your utility bills and rent on time.

6.Stay away from payday loans.

7.Live within your means. Do not unnecessarily increase your debt to income ratio by taking on credit to purchase luxury items that you DO NOT NEED. Your payments on consumer debt should equal no more than 20% of your expendable income after costs for housing and a vehicle.

8.If you have any debts that survive the bankruptcy, pay them on time every month. This will show new potential lenders that you have the ability to repay your new debts on time.

9.Check your credit reports every six months and make sure that all information is accurate. You should correct credit report inaccuracies so that potential new creditors will know which debts are no longer your responsibility.

10.Minimize the number of inquiries on your credit report. Every time a potential creditor make an inquiry into your credit, your credit score can go down. To combat this, you should call (888) 5 OPT OUT and follow the voice prompt. Calling this number allows you to opt out of promotional mailing lists sold by credit bureaus.

[Although we want people to site the source of their information, this is too much of an advertisement, I am removing the URL]

[dasmom]

Thanks HHM, I don't want to break any forum rules.

dasmom

[telco95]

Thanks for the info!

[BANKRUPT13]

THanks for all of that info. It really helped me out a lot!

-C

[dtw313]

Great info!!!

[RichM]

Some additions:

11. Stop by your local Catholic church and get some holy water. Before dealing with any banker, sprinkle some of the holy water on them. If the banker screams or if their skin begins to boil where the water touches, then don't deal with that bank.

12. Strike up a relationship with your neighborhood loan shark so you can refinance your bank loans at lower rates.

13. Or better yet, screw the banks altogether. Find yerself a good credit union, instead.

14. Find a 2-year-old and practice saying "NO!" with him or her. Whenever they say "NO!" just say "NO!" right back to them. When the toddler gives up and walks away, then you will have mastered the most important skill of negotiating with banks. (If the toddler doesn't give up, then simply take them to the bank with you when negotiating a loan.)

15. When buying a car, hire someone from Brooklyn to negotiate the deal for you. If you don't know anyone from Brooklyn, then try to find someone from The Bronx.

16. If you can't find anyone from The Bronx, either, practice and memorize these important, key financial phrases:

"Yo, I might as well deal with Louie da loan shark."
"Yo, waddya dink, I was born yesserday?"
"Yo, you effin kiddin me or someding?"
"Yo, you know what you can do wid dat interest rate?"

17. Before going grocery shopping, watch the movie "Rambo." Then approach grocery shopping as if it were guerrilla warfare. The supermarket is the enemy! Don't buy ANYTHING unless it's on sale, and aim for at least 40 percent off the regular price. Celebrate each trip during which you saved at least 40 percent as if it were the Battle of Midway.

18. When someone from a bank calls you on the phone and says, "I have a special offer for you," ask if it comes in purple. If not, then tell them you're not interested and hang up.

19. Always pay your paper boy (or girl) on time, and include a fair tip. Then put them down as a trade reference when you apply for a loan.

20. Buy a safe, and make as much money as you can in cash.

-Rich

[startnova]

thanx for the info!!!

[HHM]

Some additions:

11. Stop by your local Catholic church and get some holy water. Before dealing with any banker, sprinkle some of the holy water on them. If the banker screams or if their skin begins to boil where the water touches, then don't deal with that bank.

12. Strike up a relationship with your neighborhood loan shark so you can refinance your bank loans at lower rates.

13. Or better yet, screw the banks altogether. Find yerself a good credit union, instead.

14. Find a 2-year-old and practice saying "NO!" with him or her. Whenever they say "NO!" just say "NO!" right back to them. When the toddler gives up and walks away, then you will have mastered the most important skill of negotiating with banks. (If the toddler doesn't give up, then simply take them to the bank with you when negotiating a loan.)

15. When buying a car, hire someone from Brooklyn to negotiate the deal for you. If you don't know anyone from Brooklyn, then try to find someone from The Bronx.

16. If you can't find anyone from The Bronx, either, practice and memorize these important, key financial phrases:

"Yo, I might as well deal with Louie da loan shark."
"Yo, waddya dink, I was born yesserday?"
"Yo, you effin kiddin me or someding?"
"Yo, you know what you can do wid dat interest rate?"

17. Before going grocery shopping, watch the movie "Rambo." Then approach grocery shopping as if it were guerrilla warfare. The supermarket is the enemy! Don't buy ANYTHING unless it's on sale, and aim for at least 40 percent off the regular price. Celebrate each trip during which you saved at least 40 percent as if it were the Battle of Midway.

18. When someone from a bank calls you on the phone and says, "I have a special offer for you," ask if it comes in purple. If not, then tell them you're not interested and hang up.

19. Always pay your paper boy (or girl) on time, and include a fair tip. Then put them down as a trade reference when you apply for a loan.

20. Buy a safe, and make as much money as you can in cash.

-Rich

That is classic..

[oregonpilot]

Thanks Rich...you got me laughin!!!
I especially liked #14

[debee]

some additions:

11. Stop by your local catholic church and get some holy water. Before dealing with any banker, sprinkle some of the holy water on them. If the banker screams or if their skin begins to boil where the water touches, then don't deal with that bank.

12. Strike up a relationship with your neighborhood loan shark so you can refinance your bank loans at lower rates.

13. Or better yet, screw the banks altogether. Find yerself a good credit union, instead.

14. Find a 2-year-old and practice saying "no!" with him or her. Whenever they say "no!" just say "no!" right back to them. When the toddler gives up and walks away, then you will have mastered the most important skill of negotiating with banks. (if the toddler doesn't give up, then simply take them to the bank with you when negotiating a loan.)

15. When buying a car, hire someone from brooklyn to negotiate the deal for you. If you don't know anyone from brooklyn, then try to find someone from the bronx.

16. If you can't find anyone from the bronx, either, practice and memorize these important, key financial phrases:

"yo, i might as well deal with louie da loan shark."
"yo, waddya dink, i was born yesserday?"
"yo, you effin kiddin me or someding?"
"yo, you know what you can do wid dat interest rate?"

17. Before going grocery shopping, watch the movie "rambo." then approach grocery shopping as if it were guerrilla warfare. The supermarket is the enemy! Don't buy anything unless it's on sale, and aim for at least 40 percent off the regular price. Celebrate each trip during which you saved at least 40 percent as if it were the battle of midway.

18. When someone from a bank calls you on the phone and says, "i have a special offer for you," ask if it comes in purple. If not, then tell them you're not interested and hang up.

19. Always pay your paper boy (or girl) on time, and include a fair tip. Then put them down as a trade reference when you apply for a loan.

20. Buy a safe, and make as much money as you can in cash.

-rich

hilarious!