Getting Credit After Bankruptcy
One of the biggest concerns that people have when considering bankruptcy is whether they will be able to get credit again. Many people believe that bankruptcy will permanently damage their credit to the point that they will never be able to get a mortgage or a car loan. This is definitely not the case. If you are considering bankruptcy, your credit is probably already seriously damaged. Bankruptcy is the first step to rebuilding your credit.
At the Arizona Law Group of Trezza & Associates, we can take you through the bankruptcy process and then guide you to the steps you need to take to rebuild your credit. Contact us for a consultation with attorney Stephen Trezza.
My Credit Score After Filing
When you need credit, your application is reviewed by an underwriter. This underwriter does not really care about your credit score. Instead, the underwriter will give you a grade based on your credit history, either an A, B, C or D. If you are late on paying your bills, you will get a D. If your house has been foreclosed, you will get a D. If your car has been repossessed, you will get a D. If you file bankruptcy, you will get a D.
The bottom line is that a D is a D, regardless of how you have gotten to that point, and you will have trouble getting credit. Filing bankruptcy does not make your situation any worse.
How to Get Back Up to an A
The real question is how do you get your grade back up to an A. Bankruptcy is the first step, because it allows you to start fresh. Then you simply have to rebuild. You will need to stay current with utility payments, car payments, house payments or rent. However, these are not going to have a lot of power. What really rebuilds your credit is staying current on unsecured credit such as credit card bills. We will provide the information you need to start rebuilding your credit as soon as you get through the bankruptcy process.
Repairing Your Credit Report After Bankruptcy
It is also important to review your credit report. There may be errors that can be fixed, and when they are fixed, your score may improve. We will offer you guidance on repairing your credit report after bankruptcy, from getting your free credit report to contesting an issue.
Contact Us to Learn More About Rebuilding Your Credit
Every case is different, so it is important to discuss your situation with a Tucson lawyer before making a decision. Contact us to discuss your options.
