There Is Life After Bankruptcy

Getting Credit

credit after bankruptcy blogOne of the primary things which stops individuals from filing Chapter seven or maybe Chapter thirteen bankruptcy may be the anxiety about not being able to get new recognition down the road. There are lots of misconceptions about bankruptcy out there, but one of the leading people is it is extremely difficult to rebuild your credit after filing. This simply is not correct. If you’re motivated and diligent, you are able to get your financial life back in line with relative ease, including new lines of credit.

After you file for Chapter 7 or Chapter 13 bankruptcy with the assistance of a seasoned customer bankruptcy attorney, most of the debts of yours is discharged, leaving you with a new start. Even though your credit rating is going to reflect the bankruptcy of yours, it might not be as damaging as you have been led to believe.

Filing Bankruptcy and Your Credit Score

Many people continue to have credit scores in the 600’s after bankruptcy, that might meet several of the minimums set by credit lenders. In addition, bankruptcy must regain much more of the income of yours, since you will not be spending on all those discharged debts, and also you need to in addition notice a greater debt-to-income ratio.

During the bankruptcy procedure, the credit of yours will basically be frozen, but the moment your discharge is through, you are going to be ready to obtain new lines of credit. Nevertheless, this might not be recommended in most cases: often it pays to wait it out there, practice living on a budget, and make constant payments on virtually any loans which were not discharged. Next, you’ll be able to begin searching for new lenders that are ready to work with individuals to rebuild the credit of yours.

How Long Does it take to Rebuild Credit After Bankruptcy?

rebuild credit infographicBefore filing bankruptcy, many people in Arizona take into consideration how long their credit score will be impacted after filing for bankruptcy protection.  Whereas,  Chapter 13 bankruptcy will stay on your credit reports for seven years, and a Chapter 7 will stay on your reports for 10 years. However, while a bankruptcy may impact your credit reports for a 7-10 years, you don’t have to wait.  You can start getting your credit back on track immediately after filing for bankruptcy.

Some of the Options to Start Rebuilding Credit After BK Include:

  • Credit-builder loan
  • Many credit and banks unions offer reduced, secured loans which are specially created to allow you to develop credit.
  • Secured credit card
  • Some credit card companies might provide you with a low balance, secured credit card. Simply be mindful that these often have extremely high APRs, and must be managed prudently.

Car Loans That Build Credit

In the months following the bankruptcy of yours, you might be delivered numerous offers from automobile dealerships, looking to provide you an automobile loan. According to the situation of yours, this might be a chance to get an useful vehicle, and begin showing scheduled payments.

Getting a car loan is a great way to get your life after bankruptcy started.  The new car loan will be positively reported to your credit when you make on-time payments.  Plus, there are car lots that are geared to finding cars for people right after filing bankruptcy.  Contact our Arizona Zero Down Bankruptcy Attorneys for more information on getting a car after filing for bankruptcy.  We work closely with multiple dealerships in order to get you the best deal on a vehicle after filing bankruptcy.

The Bottom Line

Although recent downturns in the economy will push bankruptcy filings up again, there will be a return to the normal.  Using your post-bankruptcy income and credit wisely is the key to rebuilding your credit.  Once you establish credit and get your “Fresh Start” you’ll be back on stable financial footing.

Bankruptcy is just a setback, it’s not the end of the line.  Therefore, if you can prove to lenders and employers that your post-bankruptcy life is in order, then your current financial problems too, will pass. Keep in Mind, Mark Twain, Walt Disney, Donald Trump, and Henry J. Heinz all went on to have prosperous futures after filing for bankruptcy.  Thus, if they can put their bankruptcy behind them, so can you.

Have Patience, The Credit Will Come

Rebuilding your credit after bankruptcy is not simple, plus is not likely to occur immediately. Nevertheless, with the correct advice, and a great deal of planning and monetary responsibility on the part of yours, you are able to get fresh credit and get everything back on track. When you would like to read about a Phoenix bankruptcy or maybe the eligibility of yours to file, meet us at My Arizona Lawyers, PLLC and request your no cost consultation!

Arizona Offices:

Mesa Location:
1731 West Baseline Rd., Suite #100
Mesa, AZ 85202

Office: (480) 448-9800
Email: [email protected]

Glendale Location:

Office: (602) 509-0955

Tucson Location:

Office: (520) 441-1450

Avondale Location:

Office: (623) 469-6603