Although bankruptcy will have a negative impact on your credit, that impact will not be forever. There are also things you will be able to do to start rebuilding your credit even with the bankruptcy still on it. Additionally, if you were drowning in debt and regularly missing payments, your credit was already being damaged. At least bankruptcies provide you an end to the continued debt accumulation. At that point, you just need to make sure you do not create new debt.
If you are someone you love is hesitant to file for bankruptcy out of fear of how you will financially recover afterwards, our bankruptcy law attorneys can help you understand how to recover after a bankruptcy. Contact a bankruptcy lawyer in your area today to learn more.
Ways to establish good credit:
Your bankruptcy lawyers will be able to help you through what you should do following your bankruptcy. They can give you ideas and help you create a plan for your financial future. Although you may not have a lot of credit options immediately following your bankruptcy, you will have options in the near future. Additionally, these options will provide you with the opportunity to start rebuilding your credit. Although you do not want to create new debt, you also do not want to go completely to cash and avoid credit all together. Having questionable credit may be better in many situations than having no credit at all.
One way to start out your life after bankruptcy is by creating a monthly budget that can be your guide to living within your means and saving money for the future. After a period of time, you can apply for a form of credit. For example, if you apply for a credit card, you will likely only be given a small credit line. Use the credit card monthly and make the payments on time every month. This is one small thing you can do to make a big impact on your credit.
Have you or someone you love avoided filing bankruptcy because you are concerned it will permanently ruin your credit? Our bankruptcy law attorneys can help you understand how to restore your credit following a bankruptcy, and how things may be restored faster through a bankruptcy than struggling with debt the rest of your life. Contact a bankruptcy lawyer in your area today to get started.
Did you know?
There are three different credit reporting agencies.
When you are attempting to check your credit report for possible mistakes, you need to check all three of them.