Many of the clients who come to us to get help resolving their debts end up filing for a Chapter 7 bankruptcy because the process is shorter than a Chapter 13 bankruptcy. Unfortunately, many people who are overwhelmed with debt choose not to file for either bankruptcy option because they are worried it will have a negative impact on their credit rating. While your credit will take a hit when you file for bankruptcy, leaving your debts unpaid will cause even more damage to your credit score. In this blog, we explain how to rebuild your credit after filing for Chapter 7 bankruptcy.
Although your Chapter 7 bankruptcy will stay on your credit report for 10 years, it shouldn’t impact your ability to establish new lines of credit and rebuild your finances. In fact, you will likely start receiving credit card offers shortly after you obtain your discharge. You need to careful with these offers because they often have low limits and high-interest rates, so make sure you carefully review the offer terms before signing up for a new credit card after your bankruptcy.
If you are trying to rebuild your credit after your bankruptcy, the best option is to open a secured credit card with your bank. With a secured credit card, you make an initial payment to serve as collateral on the account. Secured credit cards usually don’t have high-interest rates or annual fees.
Are you worried about your financial situation and whether you will be able to rebuild your credit after declaring bankruptcy? Our attorneys at Bach Law Offices, Inc. are here to provide you with the legal guidance you need to recover from debt and get a fresh start on your finances. We understand how difficult it is to wrestle with enormous debt while trying to provide for your family. Our law firm can put you on a path to financial freedom that suits your goals and budget.
Call (847) 440-5998 to set up a consultation with our legal team to discuss all of your bankruptcy options.
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