After you’ve filed for bankruptcy and finished the process, you can start to look toward the future. You need to take steps to rebuilding your credit.
Although it may be difficult, it is not impossible. It may be like getting your first job in some ways. Although you had no experience, you finally did get a job. It likely was not your dream job, but most people can work little by little to gain more responsibility. At some point when they look back, they may be shocked how far they have come.
Unfortunately, with bankruptcy on your record you must pay more to borrow money since you will be considered a subprime borrower. This means you will face higher interest rates and higher penalties for late payments since you are at a greater risk of default.
When you file for Chapter 7 liquidation, you dramatically reduce your debt-to-income ratio. You also may not be allowed to file for Chapter 7 again for at least eight years, which actually may make you a better immediate risk for some lenders.
If you’ve filed for Chapter 13 bankruptcy, rebuilding your credit may take a bit more time since your debts are restructured and you will be slowly paying them off.
It is important not to try to borrow money too quickly. Once you decide to borrow money, make sure you make timely payments every month to help reestablish a good credit history and obtain loans with the best terms when possible.
You may want to consider opening a secured credit card account. This is an easy way to help build up your score.
While you are rebuilding your credit, you should also make sure you have an emergency reserve so you don’t find yourself back where you started. Do not get caught up in payday loans or predatory lenders who prey on those with bad credit.
You can keep a close eye on your credit scores by looking at your credit reports from the major reports. Make sure there are no errors, all information is accurate including your job and residence.
If you are struggling and considering bankruptcy, make sure to call the office today. I can help you figure out the best path to take and how to begin rebuilding your financial life.
Practice Areas
Staff is very friendly and helpful. They work with you and help you get back on track. No judgement just understanding. Simply amazing.
-Eric Nyman
Professional, responsive at a time when I felt so vulnerable and confused. Looking forward to going forward ftom here with HS&A.
-Deanna Cosens
HS&A recently represented me and did an excellent job of providing me with answers to my questions and efficiently handling my case. I felt well represented and informed throughout the entire process. I highly recommend them!
-Kate Sumbler
Great people, very through and kind. All of my questions and concerns were answered very professionally and accurate and in a very timely manner. My hearing went very smoothly. I was very pleased with my experience
-Thelma Rumble
Experience, Knowledge & Determination at a Trusted Civil Law Firm
Why Choose Michigan Bankruptcy Attorneys?
Compassion Backed By Experience
With over 15 years of experience, we know this is a difficult journey – and will treat you with the care and compassion you deserve.
Dedicated Problem Solvers
When you put our investigative expertise to work, we’ll dig deeper into the details than other attorneys – which makes the winning difference.
Respected in the Legal Community
With years of trial experience, we have long-established credibility with judges, insurance companies, and other attorneys.
Individualized Attention to Every Case
You’ll work directly with one of our attorneys, who treat every client as their only client. No matter how long it takes, we’ll see your case through.
