May
9

How To Establish Credit After A Bankruptcy

Filed Under Real Estate Investing, foreclosure 

Seal of the United States bankruptcy court. Church of Scientology attorney Steven Hayes bought rights to the Cult Awareness Network assets during its bankruptcy proceedings.

Today I had to be in the bankruptcy court because a seller wrongly included a property that was not longer theirs in a bankruptcy filing as a way to stay in the house payment free. A real sleazy thing to do.

So we show up to petition the court for a release and what a surprise, the seller doesn’t show up and the judge releases the stay per our request.

This is one example where the former owner was doing something very wrong… especially considering that they were hours from losing the home to foreclosure when they took out a private money loan in the first place.

That aside, there can be legitimate uses for bankruptcy and many real estate investors have decided that bankruptcy was the right tool for them to start over after having made some bad investment decisions.

How To Establish Credit After A Bankruptcy

  1. 1. Apply for a secured credit card. Forget the other advice because this will save you time and frustration.
  2. 2. Charge everything you can on the secured credit card without going over the limit. Pay the card off every month.
  3. 3. Open a savings account and set aside a certain amount into the account every month. Don’t touch this money… just let it grow.
  4. 4. Check out www.annualcreditreport.com. You’re able to get a free credit report but make sure you agree to see the report for 30 days or you may not be able to access the report later.
  5. 5. Find and dispute all negative reports online. State reasons and be sure to add personal statements whenever possible. Repeat every 20 days. Repeat challenges every 20 days!
  6. 6. Repeat steps 4 and 5 every 3 months until you have the desired results.
  7. 7. Simple as this sounds be sure to PAY your accounts on time.

Author: Gerald Romine

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