What Happens After You File For Bankruptcy
Bankruptcy marks the end of debt problems and the beginning of a new financial future. Filing for bankruptcy fulfills two important goals that can change your life forever:
- Bankruptcy eliminates debt (in a Chapter 7) or reorganizes debt into a manageable payment plan (in a Chapter 13).
- Bankruptcy stops creditors from taking collection actions against you.
These advantages quite often outweigh the disadvantages of filing bankruptcy. Before you decide how to move forward, make sure you consult an experienced attorney who can analyze your situation and provide guidance through the process.
How To Rebuild Your Credit Rating
Yes, bankruptcy does have a temporary negative effect on your credit score. Most people who file for bankruptcy, however, have very bad credit to begin with. In such cases, bankruptcy is the first step in the process of rebuilding good credit.
You can start rebuilding your credit immediately after filing for bankruptcy. In fact, credit offers may start pouring in, because creditors know you cannot file for bankruptcy again for several years. You will probably get offers for car loans with unreasonably high interest rates. It is best to avoid these.
You can start rebuilding your credit by taking on small, manageable amounts of credit at first. A secured credit card is often a good place to start. By consistently paying your bills on time, you will start to see improvement in your credit rating. If you keep it up and do not miss payments, you will eventually be able to secure loans for larger items, even a car or a home.
How To Contact Me
How can bankruptcy rebuild your credit? I can only answer that question by reviewing your unique circumstances. Call me, Lake County bankruptcy law attorney Paul R. Idlas, at 847-986-8862, or contact me online.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.