Scottsdale and Phoenix, Arizona Foreclosure & Loan Modification Attorney

Rebuilding Your Credit After Foreclosure or Bankruptcy

Law Office Of

Joseph A. Velez


Real Estate & Business Law Attorney

By law, a home foreclosure can stay on your credit report for a period of up to seven years and a bankruptcy can last up to ten.  However, during that period, it's possible to improve your credit score (after the initial damage has been done).  There are a couple measures that should be taken when trying to improve your credit.

  1. 1.Continue to make regular, on time payments for any outstanding debt.  The consistency of regular payments is a significant factor in determining a credit score.

  2. 2.If possible, get a credit card.  There are many companies that will give low limit or prepaid credit cards to people with damaged credit.  Use the credit card for a low priced purchase each month (i.e. a tank of gas) and pay it off.

  3. 3.Keep a low (50 percent or less) balance to credit limit ratio. For example, if you have a $1000.00 limit on your credit card, your balance should be $500.00 or less. This will help raise your credit score and keep your debt manageable.  Maxing out your credit card will hurt your credit score and hinder the rebuilding process.

  4. 4.If you continue to have financial problems, work out a manageable repayment plan with creditors.  They will not report underpayment or lack of payment to credit bureaus if you have an agreement established.

  5. 5.Another factor that credit bureaus put into consideration when deriving your credit score is the length of time an account has been opened.  If you have any credit cards that are seasoned it is best to keep these open and continue to use them minimally and pay them off each month.

  6. 6.It is also important not to apply for too much credit at once.  Regular credit inquires can ding your credit score a few points each time.  Applying for a variety of credit cards can add up, lowering your credit score even more.

  7. 7.Finally, it is necessary to be patient.  Your credit will not be restored overnight.  It will take months of good credit behavior to see the results. 

After time, the impact of foreclosure or bankruptcy on your credit will diminish.  Your new credit behavior will be weighed heavier when determining your credit score, not the blemishes of your past. While every situation is different,if diligent efforts are made your credit should be back to its pre-foreclosure or bankruptcy state within 12- to 18 months.  Contact the Law Office of Joseph Velez for credit advice and debt settlement strategies. 

The Law Office of Joseph Velez

Commercial Real Estate & Business Law Attorney

Scottsdale Financial Center

7272 E. Indian School Rd., Suite 111

Scottsdale, Arizona 85251


Our law office represents clients throughout the Phoenix, Arizona area including the cities of Scottsdale, Maricopa, Mesa, Surprise, Paradise Valley, Avondale, Gilbert, Chandler, Glendale, Florence, New River, Fountain Hills, Peoria, Surprise, Queen Creek, Tempe, Sun City, Apache Junction, and Casa Grande. We serve the counties of Maricopa, Yavapai, Gila, Pinal, La Paz, Yuma, and Pima County.

DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent legal counsel for advice on any legal matter.

One hour initial office consultation fee is $295 for the matters discussed above.