After a bankruptcy case, you would most likely start from scratch and you would want to reinvest your money. Starting anew after a bankruptcy poses a lot of questions. How will creditors look at your credit report? What will happen to your credit rating? These are only some of the questions you will have to deal with.
What are you going to look for in your credit report after filing a bankruptcy? Here are some points to take into consideration. Your credit report shows your past transactions on borrowing, repayments and bankruptcy. You have the right to be accurately presented with all your past financial dealings. Check your report if all of the information stated are true – don't be careless, as you may be charged with rogue transactions. When you find transactions you didn't make, ask the credit bureau to make the necessary corrections.
After the discharge of your federal case, all creditors' account should reflect zero balances. This means that all your previous debts have been settled after the case and that you don't have pending delinquencies. Watch out for these balances since this could affect your creditworthiness. Having an open balance with your creditors will show that you are still delinquent in settling your accounts with them.
Bankruptcy is normally reflected for 10 years in your credit report. But this is not always the case, especially when you voluntarily dismiss the case. When this happens, the dismissal should be reflected in your report. Like those zero balances, you should make sure that this is reflected properly since this will improve your creditworthiness.
Just because you undergone bankruptcy and it's included in your credit report doesn't mean you can't get credit. Not all creditors have the same standards and they have different interpretations of your credit report. Some look at how you improved on managing your finances.
Always treat everything as a challenge. Make your report look good by making the right decisions in managing your finances. This is a good jump-start to a good credit reputation.