You may have heard or seen advertisements for companies that offer credit repair solutions. The fact is that there is no such thing as “credit repair.” Many of these agencies are scams. Other agencies will simply write letters to the three main credit agencies—Experian, Equifax and TransUnion—attempting to correct any errors on your credit report that you may report to the agency. These agencies may also claim that they will “monitor” your credit rating.

After bankruptcy, your balances listed on your credit report will be reset to $0. For example, if you owed your cell phone carrier $400 before bankruptcy, in Chapter 7 bankruptcy, then that debt would be wiped away. The credit report agencies would report that you do not owe anything to that company. If the credit reporting agencies make errors on your credit report(s), then you can have them corrected, and you may be able to sue a bank for reporting that debt or even the credit report agency itself under the Fair Credit Reporting Act (FCRA).

One way to build credit, as in to raise your FICO credit score, after bankruptcy is to repay any new debts on time. You should not take on more debts than you can handle. If you choose to get a credit card after bankruptcy, then you should be very careful. Do not max out your credit card and owe more than you can pay. First, late payments will negatively affect your credit score. Second, you can file bankruptcy only once every eight years. Therefore, if you get yourself into deep debt, then you cannot gain relief through bankruptcy again for years. While many of our clients receive letters from credit card companies and banks that they have been pre-qualified for credit cards, those who choose to get a credit card tend to use it very responsibly and do not make large purchases. Over time, peoples’ credit scores tend to rise if they are careful. A credit score is a factor that determines whether or not you can get a loan, and it also helps determine the terms of your credit card or loan and interest rate.

Jayson Lutzky is a Bronx, NY attorney that handles personal bankruptcy cases. He has over 31 years of legal experience and has helped thousands of satisfied clients over the years. He offers free in person consultations and will help determine if bankruptcy is right for you. Call 718-514-6619 to set up an appointment. Visit Mr. Lutzky’s website,, for more resources.