Bankruptcy is a major life decision that can have noticeable benefits for individuals that choose to file. Bankruptcy can improve upon problems that you have with finances. Those considering to file should also be aware of other effects it will have.
In many instances, your credit score will decrease once you file for bankruptcy. It is up to you to rebuild your credit score to your desired level. Declarations of bankruptcy will be indicated on your credit report. In some instances they can stay for as long as 10 years.
There are steps that you can take to improve your credit score once you file for bankruptcy. The first and arguably most important step is to take a look at your expenses. You should do your best to avoid falling into a pattern of debt once again. If you filed for Chapter 13 bankruptcy you should be making your payments on time. This will avoid future damage to your credit score in the form of missed or late payments.
You should keep an eye on your credit reports. Monitoring your credit reports will keep you updated on the status of your credit history. It can also alert you of any mistakes that may pop up. It is wise to keep an eye on your score as you try to build it up.
Abandoning the credit system after you declare bankruptcy is not a wise option. Utilizing it in a certain way can help you build up your credit score faster than if you forget it entirely.
Securing a car loan with a low interest rate can be a hassle but if you keep up with the loan the reward to your credit score is worth it. You could also obtain a new credit card and charge minimal amounts at a time. Paying these small amounts ahead of a statement can have beneficial effects on your credit score.
There will be a decrease in your credit score once you file for bankruptcy but there’s also plenty of opportunity to build it up. Increasing your credit score can make gaining lines of credit easier, it is essential to your financial well-being.
If you decide to file for bankruptcy, the attorneys at Citizens Law Group will be with you every step of the way. Our team locates the best option for your situation and keeps you informed throughout the entire process.