Thumbs Up Thumbs Down
Share Your Experience
X

Rebuilding Your Credit After Bankruptcy

Illinois bankruptcy attorneysThe decision to file for bankruptcy is not one easily made. It requires a debtor to take an honest look at their situation and admit that they need help. Filing for bankruptcy can also cause feelings of guilt, and it may negatively impact your credit score. How do you rebuild it, and how long does it take? The following provides some advice and guidance on this issue and explains where you can find assistance with your bankruptcy needs.

How Does Bankruptcy Affect Your Credit?

When you file for bankruptcy, your credit does take a hit. Furthermore, the bankruptcy stays on your credit for a total of 10 years. However, the damage is not as extensive as most people think. Yes, bankruptcy might make you a subprime borrower, but you also cannot file for bankruptcy again for another eight years if you file Chapter 7. Also, if you file Chapter 13, your debt-to-income ratio could be significantly decreased over the course of just a few years.

Another factor to consider is that repeated and long-term defaults on your payments are more damaging to your credit than filing for bankruptcy. You get to start over with a clean slate, and if you budget effectively, you will not have any additional missed payments. Over time, this can improve your credit, perhaps even more than if you had tried to get yourself out of debt.

Rebuilding Your Credit After Bankruptcy

When trying to rebuild your credit after bankruptcy, it is important to start small. Start with things like secured credit cards or low-limit credit cards and then work your way up. Over time, you may become available for better credit offers, but make sure you are diligent about not taking more credit than you can afford to pay back. It is also suggested that you strive to save emergency funds, should something ever happen, such as a job layoff, car repairs, or missed work because of illness or injury. Remember: proper and careful planning can help you stay out of financial trouble in the future.

Contact Our DuPage County Bankruptcy Lawyers

If you are struggling with debt and are searching for a way out, contact Davi Law Group, LLC. Backed by both knowledge and experience, our dedicated DuPage County bankruptcy lawyers can examine your situation to help determine if bankruptcy may be the appropriate option for you and your family. We can also guide you in rebuilding your credit after bankruptcy. Learn more by scheduling a personalized consultation. Call 630-580-6373 today.

Source: 

http://www.bankrate.com/finance/debt/bankruptcy-timeline-rebuilding-credit-1.aspx

Abraham Lincoln A lawyer’s time and advice are his stock and trade. -Abraham Lincoln
Warrenville Office
Address28371 Davis Parkway
Suite 103
Warrenville, IL 60555
Phone(630) 657-5052
Fax(888) 350-9195
Wheaton Office
Address1776 S. Naperville Road
Building A, Suite 105
Wheaton, IL 60189
Phone(630) 580-6373
Fax(888) 350-9195
Chicago Office
Address321 N. Clark Street
Suite 900
Chicago, IL 60654
Phone(312) 985-5676
Fax(888) 350-9195
Joliet Office
Address58 N. Chicago Street
7th Floor
Joliet, IL 60432
Phone(815) 582-4901
Fax(888) 350-9195
Davi Law Group, LLC handles family law, estate planning and real estate matters for clients in Chicago and throughout the western suburbs including DuPage County, Will County, Kane County, Kendall County and Cook County and the cities of Aurora, Bloomingdale, Bolingbrook, Carol Stream, Darien, Downers Grove, Elmhurst, Geneva, Glen Ellyn, Hinsdale, Joliet, Kendall County, Lisle, Lombard, Naperville, Oak Park, Oak Brook, Oswego, Park Ridge, Roselle, St. Charles, Villa Park, Warrenville, Wheaton, Winfield, Woodridge and Yorkville, Illinois.
Warrenville Office
Address28371 Davis Parkway, Suite 103, Warrenville, IL 60555
Phone(630) 657-5052
Fax(888) 350-9195
Wheaton Office
Address1776 S. Naperville Road, Building A, Suite 105, Wheaton, IL 60189
Phone(630) 580-6373
Fax(888) 350-9195
Chicago Office
Address321 N. Clark Street, Suite 900, Chicago, IL 60654
Phone(312) 985-5676
Fax(888) 350-9195
Joliet Office
Address58 N. Chicago Street, 7th Floor,
Joliet, IL 60432
Phone(815) 582-4901
Fax(888) 350-9195
Contact us