Rebuilding Credit After Chapter 13 Begins With Careful Credit Card Choices

Law Firm Newswire



Des Moines, IA (Law Firm Newswire) October 10, 2012 – For those who have declared Chapter 13 bankruptcy, rebuilding credit is similar to a Chapter 7 bankruptcy.

It does not matter which Chapter someone files under when it involves rebuilding their credit. The discharge, or conclusion of the bankruptcy process, is much the same in each instance. The first step for a discharged debtor is to get their name back into credit reporting data bases, with a notation that shows on time payments over a period of time. It is not complicated. It just takes work on the part of the debtor to turn their credit report around from a negative, to a positive report, and reclaim lost points indicated Kevin Ahrenholz, an Iowa bankruptcy lawyer.

The quickest way to make an impression is to apply for a credit card with a very low limit, which may be as low as $200. The next step is to prepay it outright, agree to prepay it or offer a deposit upfront. Use the card and ensure all payments are made on time, every month, without exception. If the debtor establishes a regular routine that demonstrates their reliability in paying bills, when a creditor accesses their credit rating, they will see a consistent effort to stay current with bills, even in spite of bankruptcy issues in the past.

Rebuilding credit is not the issue, because it can be done successfully. The issue is that the debtor needs to be consistent in paying all of their bills, without delay, every month, without excuses, stated Iowa bankruptcy lawyer Ahrenholz. By working on it over a period of time, their credit rating is restored, and while debtors think they will never get credit again, that is not the case.

There are many financial institutions willing to work with a debtor who shows that they are making an effort to be responsible about their bills and payments – even if they have declared bankruptcy. While the credit extended may not be what the debtor was once used to, it is a start; a new lease on new credit for their new debt-free life.

Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact an Iowa bankruptcy attorney, Iowa bankruptcy lawyer, or set up an appointment, visit or call 1.877.888.1766.

Kevin Ahrenholz
309 Court Ave., Suite 805
Des Moines, IA 50309
Offices in Des Moines, Cedar Rapids, Waterloo, Mason City, and Vinton.
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