If you are like most people, when you borrow money, you intend to repay it. When something unforeseen occurs, such as a catastrophic illness or job loss, you may be unable to repay. There may be bankruptcy options available to assist you in paying your bills to erase the debt.
While bankruptcy may appear to be the ideal solution, it produces poor credit. It makes it challenging to maintain bank accounts and credit cards, resulting in the loss of valuable possessions and making it difficult to continue with life’s necessities, such as wanting to rent, buying a house or car, obtaining insurance, or finding a job. In actuality, most financial counselors view bankruptcy as the last alternative – one that should be pursued only with the assistance of an experienced bankruptcy attorney – and only after budgeting, credit counseling, and other measures have failed.
If you intend to file for bankruptcy, you must complete a credit counseling course from a government-approved agency within 180 days before filing. Additionally, you must complete a debtor education program before your obligations can be dismissed.
How to rebuild your credit scoring after bankruptcy
Working with a Hammerschmidt Stickradt & Associates bankruptcy attorney can aid in navigating the bankruptcy process and provide valuable advice for rebuilding credit after a bankruptcy procedure. Call our bankruptcy attorneys in Royal Oak or Wyandotte today. Plus, you can get a free complimentary examination online to gain assistance analyzing your options and making the best decisions to improve your credit score.
Why Do I Need a Bankruptcy Attorney in Royal Oak, MI?
You may be unfamiliar with bankruptcy but have a significant case to develop. You may have completed the documentation and require the assistance of Hammerschmidt Stickradt & Associates to evaluate it. A Michigan attorney is competent in assisting you with seven tasks as far as bankruptcies are concerned.
Being updated on bankruptcy law
A Michigan bankruptcy attorney is well-versed in state and federal law and is up-to-date on the latest amendments to existing regulations. They obtain information and training that are not required of clients.
Handling matters on paperwork
Numerous documents must be filled out, signed, and filed in a bankruptcy case. The absence of a single document may result in the dismissal of your case or refusal of your release. A lawyer knows which forms to complete and will file them on your behalf.
Describing your bankruptcy options
There are various methods to settle debt and avoid court. An attorney explains all of your bankruptcy choices. You will have a comprehensive understanding of the six bankruptcy chapters of the Bankruptcy Code, including Chapters 7, 11, and 13.
Straightening out assets and liabilities
Your lawyer is familiar with common phrases such as “assets” and “liabilities.” They are familiar with popular legal and accounting terms. You will learn how to manage your assets and liabilities effectively to strengthen your case.
Maintaining track of time
An attorney is always aware of the time. Meeting deadlines is the most troublesome aspect of filing. You must gather the evidence, complete the paperwork, and file the paperwork on time.
To prevent bankruptcy fraud, a skilled attorney is always honest and precise. Request that they review your documentation. Intentionally or inadvertently, a mistake could cause a document to appear fraudulent.
Rely on legal counsel to appeal a denied case. You may be denied due to a simple inaccuracy in your application and deem the result unreasonable. Your attorney will identify any unfairness and advocate for a new ruling.
Filing for bankruptcy takes time and is less effective without the assistance of attorneys. Hammerschmidt Stickradt & Associates works diligently to help clients understand the law and file on time. Streamline the procedure and improve your chances of regaining creditworthiness.
Rebuilding Your Credit Following Bankruptcy
The decision to declare bankruptcy is quite challenging. Filing for bankruptcy is intended to give a troubled borrower a fresh start but also affects your future credit, reputation, and sense of self, which could affect your credit profile. Thankfully, it also significantly improves your short-term quality of life, relieves many of your financial commitments, and may let you secure new credit lines within one to three years of filing.
Recovering from bankruptcy is a gradual process. Your credit scores will improve, and you will become eligible for loans again brought about through better credit. What are the most effective methods for restoring credit? Here are six suggestions for rebuilding good credit and becoming eligible for loans again as quickly as possible.
Construct a budget
Budgets provide a detailed view of your spending shortcomings. They give the framework for you to strengthen yourself in those areas and use your money to cover your expenses. Ensure that your income is based on your monthly net pay instead of your wage. An efficient budget will necessitate painful decisions, but remember that these small decisions will build up to something considerable and tangible, making the entire process worthwhile.
Make prompt payments
On-time bill payment is one of the finest strategies to raise your credit score swiftly after bankruptcy. Paying your mortgage or rent on time, as well as your auto loan or lease, will increase your credit score and prevent you from falling back into debt.
Draw up an emergency fund
It may be daunting, but you can accomplish an emergency fund by growing your income or cutting your costs. For instance, you can quit eating out and reduce unneeded (and costly) expenses like cable television. Consider selling non-essential items or having a second job to earn extra money.
Obtain a secured credit card
Sounds risky? Not if you’re careful. Get a credit card for emergencies, but make most purchases with cash, a check, or a debit card. If you use your credit card, paying it off in full and on time each month would eradicate the possibility of card debt.
Get a copy of your credit history
After bankruptcy, credit monitoring services can be extremely beneficial. By monitoring your credit score, you can determine whether your efforts are producing the desired results. A free copy is available at the Annual Credit Report website (www.annualcreditreport.com). Check your credit report responsibly once every six months.
Your credit rating assuredly climbed after filing for bankruptcy because you represent a bigger credit risk to lenders. If you want to buy a home, you may have to wait at least two years after the discharge of your bankruptcy. But be realistic about what you can afford as well. Affordability requires a 15 to 20 percent down payment without dipping into savings, the ability to finance, and not exceeding 25 percent of take-home earnings.
Call our Bankruptcy Lawyers Now!
Geared toward improving your credit score?
Our bankruptcy attorneys assist clients throughout the state of Michigan, including those in Royal Oak and Wyandotte. The past 15 years have been devoted to creating and implementing a plan that will assist clients in resolving the burdens associated with their bankruptcy issues, removing the strains of debt, and reducing the stress regarding the bankruptcy filing process in Michigan. Contact our bankruptcy attorneys in Royal Oak today for a free consultation to discuss your options, especially when you have plans on how to rebuild your credit after bankruptcy.
Seeking Financial Freedom?
How would you like to wake up not worrying about your creditors or loan balances? Our Michigan Bankruptcy Attorneys can help you attain new financial freedom! Worried about the cost? We offer payment plans for all budgets and a free credit rebuilding program!