Filing bankruptcy gives you immediate relief from the most serious consequences of unpaid debts, such as creditor harassment and garnishment of your wages and bank accounts. But what happens next? Will you be able to rebuild your credit after bankruptcy?
At the Arizona law firm of Trezza & Associates, we provide straightforward advice and counsel about the consequences of bankruptcy. Don't hesitate to contact us to set up a free consultation with experienced Arizona bankruptcy attorney, Stephen Trezza.
Making a Fresh Start and Rebuilding Your Credit
One thing people want to know is whether they will be able to get credit cards and other loans after bankruptcy. If you are behind on your debts, your credit score is already suffering. In some cases, filing bankruptcy may increase your score. However, this is not guaranteed.
More importantly, filing bankruptcy gives you a fresh start and a clear path toward rebuilding your credit rather than getting deeper into trouble.
Bankruptcy remains on your credit report for eight to 10 years. However, your access to credit will generally loosen up after about three years and get better over time as long as you keep up with all your payments after your bankruptcy filing.
Some people are actually offered credit cards soon after filing bankruptcy. These cards usually have low credit limits and high interest rates. If you are offered a card, using it and paying it off every month can be an excellent way to rebuild your credit.
Understanding All Possible Effects of a Bankruptcy Filing
Filing bankruptcy can have an impact on other aspects of your life, beyond your credit record. It could affect your insurance rates, your employment prospects in financial professions, and the level of security clearance you can obtain from the federal government.
These consequences do not happen to everyone and are likely to be temporary. However, it is important to talk to a lawyer about possible consequences before filing bankruptcy. Contact us to discuss your questions and concerns.
Life After Bankruptcy Letters
- Stop and Remove Inquiries to Credit Report
- Remove Inquiry from my Credit Report
- Remove Old Info from Credit Report
- Notice of Intent to File Formal FTC Complaint
- I Paid This Debt
- Dispute Item on Credit Report Initial Letter
- Dispute Item on Credit Report Follow-up Letter
- Credit Bureaus Contact Information
- Add Personal Statement to Describe Item on Credit Report
