Yes, You Can Recover From Bankruptcy
There is no question that filing for personal bankruptcy will ding your credit score. In fact, for the first couple of years after your bankruptcy has been discharged, you can expect getting any kind of a loan or credit card to be tough. But if you apply the principles learned in your required credit counseling and financial management class, you will find your credit rating improving relatively quickly. Many people report getting a car loan in about a year.
At CBG Law Group, PLLC, we want to help you get a fresh start from your debt. Attorney Darrel Carter has more than 16 years of experience working with individuals and families who have discovered that bankruptcy really was their best option for a new future.
We invite you to learn more about rebuilding your credit after filling for Chapter 7 or Chapter 13 bankruptcy. Of course, every client's story is different. Contact us to arrange a free consultation with Mr. Carter about your debt relief needs. We will treat you with respect and give you an honest evaluation of your circumstances.
Some Effective Ways to Rebuild Credit
Fight for your credit: If you get denied, find out why and fight to get your application approved. Every loan, no matter how small is a step in the right direction — but only if you make timely payments.
Explain your circumstances: If there were special circumstances leading to your bankruptcy, such as a serious illness, write a letter to the credit reporting agencies. In addition, attach the letter to your loan applications.
Make all payments on time: Every late payment reaffirms your creditors' belief that you are a bad credit risk. Keep things simple. Set up a regular payment plan for your mortgage and car payment and STICK TO IT.
Get a co-signer: If you can find someone willing to co-sign a loan, banks are generally willing to extend credit more quickly. You will still be the primary account holder. Make your payments on time and keep the bank — and your co-signer — off your back.
Apply for a secured credit card: A secured credit card means that you deposit a certain amount of money into a special account. Your credit limit will be based on the amount you deposit. Sure, it's your own money, but it will give you an opportunity to show other creditors that you are responsible and can make payments on time.
Use sound financial management: You may find some creditors willing to loan you money immediately after your bankruptcy. Of course, the interest rates, penalties and fees will be very high and can lead to the same debt problems. Don't fall into the same trap. Use common sense about credit and financial management.
Timely payments are often better than lump-sum payoffs: When you get a loan, you don't have to rebuild your credit rating all at once by making a single, lump-sum payoff. Rebuilding your credit will take time. Many creditors would rather see a credit report that reflects timely payments over a specified repayment period, rather than attempts to trick the system.
An Experienced Lawyer Will Help the Process Go Smoothly
Want to learn more about what your life will be like after bankruptcy? Contact us in Bellevue to schedule a free consultation. We represent clients throughout the Seattle metro region and western Washington.
