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California consumers can rebuild credit after personal bankruptcy

Some of the top reasons for filing bankruptcy are due to medical costs and sudden job loss. Many California consumers may be reluctant to file personal bankruptcy because it stays on their credit for a certain amount of years. There are ways consumers can rebuild their life after the debts have been discharged.

One way is to seek to rebuild ones credit profile from the start. This can be done by applying for a secured credit card. Unlike the traditional unsecured line of credit, secured credit cards operate just like debit cards. When choosing a secured credit card, make sure the company reports to all three credit bureaus. Once a person starts rebuilding their credit profile, it's important to make timely payments for all expenses, including utilities and monthly car payments.

Debtors should utilize financial sessions to assist them with money management and creating a budget. Those who file for bankruptcy must participate in a debtor education program and credit counseling. The knowledge gleaned from these programs may help in future financial situations and discover what caused someone to go through bankruptcy in the first place.

Even after an individual has filed for personal bankruptcy, it's important for them to check their credit reports months after it has been finalized to ensure the accounts have been closed. In some cases, a California resident may be able to purchase a home within the first two years of filing bankruptcy through an FHA-insured loan. Even though it make take years for one's credit to be fully restored, there is light at the end of the tunnel and opportunities to rebuild financial stability once and for all.

Source:, Find your financial footing after bankruptcy, Andrew Housser, Sept. 30, 2013

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