AZ Fanzgo Blog

A good credit score after a bankruptcy rebuilds and reverses most of the negative impact of insolvency and puts the debtor on firm financial footing again. When reporting agencies remove bankruptcy after 10 years, the key is to maintain a clean record. While some Chapter 7 debtors may want to go out and celebrate their newly found debt elimination, caution should be exercised. The same financial mismanagement practices that caused debtors to file bankruptcy 8 years ago are prone to entangle them again if vigilance is not exercised. Maintain the same standard of living experienced after bankruptcy. Don’t be tempted to go out and spend irresponsibly just because credit scores after bankruptcy have gone up. Be frugal, be watchful and be wise about incurring more debt than one’s budget can safely handle. And be careful about applying for financing too frequently. Consumer scores reflect the number of inquiries on a report; a large number can quickly lower credit scores which have been improved.