If you call for a bankruptcy consultation, part of that phone call will be a discussion regarding your credit score after bankruptcy. There is plenty of good news regarding your credit score after bankruptcy. This article will help you distinguish between fact and myth.
Your Credit Score After Bankruptcy Will Not Be Ruined
Generally, your credit score a year after filing a Chapter 7 will recover to what it was just prior to filing the Chapter 7 bankruptcy. While there are exceptions, most clients who choose to file a Chapter 7 do not have a perfect credit score. By eliminating debt in the Chapter 7 filing, your debt to income ration improves and this helps your credit score recover after you’ve filed bankruptcy.
You Will Receive Offers For Credit Cards After Bankruptcy
Clients are surprised to find that they are offered credit cards shortly after filing bankruptcy. Certainly, most clients report that around the one year mark after filing, they receive credit card offers. While the interest rates may be high, this is true of most credit cards. If you pay off the balance each month, you are never charged interest. The reason banks offer you credit cards so soon after filing bankruptcy is that you are a good candidate for credit. You’ve discharged all of your unsecured debt through bankruptcy, and you’re more likely to pay on a new credit card. The creditors also know you can’t file bankruptcy again for a number of years.
If you want to improve your credit score after bankruptcy as quickly as possible, consider a secured credit card. A secured credit card is one where you give the bank or credit union a deposit. For instance, you may give the bank $300.00. In exchange, the credit union gives you a credit card with a limit of $300.00. Each month, if you spend some and pay the balance down to $0 again, the credit union will report this to the credit bureaus. This positive payment history serves to quickly build your credit score after bankruptcy. Quite often, after a history of on time payments, the credit union will extend your credit to a higher limit.
You Can Build Credit While A Bankruptcy Shows On Your Credit Report
A bankruptcy filing will show on your credit report for no more than ten years. This will not prevent you from building your credit score after bankruptcy. Your income to debt ratio will be improved, and if you immediately take advantage of secured credit cards, or make payments on vehicle and mortgage debt, your credit score after bankruptcy will build accordingly.
Speak With A Charlotte Bankruptcy Attorney Today
Making a phone call is the first step. We get excited when we speak with potential clients who are considering filing bankruptcy. Quite often I find myself telling clients that whether they file with our firm or another firm, they NEED to file bankruptcy. I believe this because after hearing their story, I believe they deserve the relief bankruptcy provides.
If you’d like to speak with a Charlotte bankruptcy attorney today, call us at 704.749.7747 or click HERE to request a call. It’s easy and it’s free. We know you have choices. We hope you choose to Recover With Us.