Will Bankruptcy Ruin My Credit Forever?
One of the best-kept secrets about bankruptcy is its positive effect on credit for people who seek relief responsibly under Chapter 7 or Chapter 13 debt relief.
This makes sense when you think about it. The people who belong in bankruptcy are most often those whose credit literally cannot be any worse. Filing for bankruptcy gets them out from under a lot of old unsecured and secured debt, and they can't get another discharge for eight years. These factors alone improve their creditworthiness.
Contact one of our experienced bankruptcy attorneys at O'Bryan Law Offices in Kentucky and Indiana to learn the truth about your ability to recover good credit after bankruptcy. In fact, many of our clients get credit card offers within a few weeks of the bankruptcy filing. We can show you how to build on these opportunities by concentrating on achieving a good credit score.
We believe that helping you recover and manage credit is part of our job
Access to credit is essential to full participation in American society. As bankruptcy lawyers, we think it's just as important to help you recover your credit, as it is to get relief from your past debts. As a result, we make sure that each of the credit reporting agencies has current and accurate information about your bankruptcy discharge and each discharged debt. Then we can check a few months later to make sure that no discharged debts appear on your credit reports.
We encourage our clients to get a small credit card account, use it wisely, and pay it off in full each month. Your credit score will improve significantly over time. Just a few months after your discharge, you should be able to get a car loan at an acceptable interest rate. Within a year or two, you should qualify for a car loan at a more favorable market rate. Within two years, you should be able to buy a house at an acceptable rate of interest.
Steps to consider in reestablishing your credit
- Ask a friend or family member to have you named as a co-maker on their credit card. This is an excellent way to start rebuilding credit immediately while not actually going into debt.
- Set a reasonable goal to save a little money each week. In six months, you would have the down payment for a secured credit card of your own. By using the card and paying it off each month, you are establishing a good payment history.
- Monitor your credit rating with the three major credit-reporting bureaus, Trans Union, Experian and Equifax. You are entitled to receive one free credit report each year from these agencies.
We help our clients understand bankruptcy as a credit restoration tool
Because you only get one discharge in eight years, it's very important to make the most of the opportunity that bankruptcy can present for repairing your credit. To learn how we support our clients in this effort, contact one of our lawyers at O'Bryan Law Offices in Louisville, Frankfort or New Albany.