People often are hesitant to hire a bankruptcy attorney simply because of negative stereotypes associated with this very common legal procedure. The old expression, what you don’t know can’t hurt you is not only a double negative, but it seems to be more common in regards to how people struggle to rebuild their lives after they file for bankruptcy. Let’s get rid of that negative belief right now and let’s concentrate on ways you can rebuild your life after you’ve made the smart choice to file for bankruptcy protection.
Fact #1 – Bankruptcy Protection gives you a second financial opportunity to rebuild your credit.
The first thing that happens when you file for bankruptcy protection, whether it is Chapter 7 or Chapter 13 is your credit report will note this having been filed and as a result, your credit score will most likely be impacted. The amount of the credit impact is determined by multiple factors such as whether you kept your secured debt like a mortgage, your current income, and other current bills which were not included in your bankruptcy filing. Although a credit agency can keep your bankruptcy filing on record for 10 years, there are many ways you can raise your credit score after your bankruptcy is completed.
Fact #2 – There are things you can do to improve this credit rating immediately.
· Examine your credit report first; once you’ve filed your bankruptcy you need to review your credit report very carefully and make sure that all the information notated is accurate. Every account which is noted in your bankruptcy needs to be noted in your credit report. If you filed chapter 7 bankruptcy those balances need to say zero.
· Establish new lines of credit; although this might be one of the reasons you had to file bankruptcy in the first place, in order to rebuild your credit rating, you’ll need to show the ability to pay small balances off every month. Sometimes obtaining an unsecured credit card is difficult after filing a bankruptcy. If this is a problem, apply for a secured credit card. This type of card requires some sort of cash deposit which becomes the credit line for the account. If you can consistently pay this card off every month, and not exceed your balance, your credit rating will improve.
Fact #3 – Things do get better folks
The biggest thing to remember is once you’ve hired a Bankruptcy Attorney to handle the filing for you, and the documents are filed with the court, you are protected. And it’s at this time when you can take a deep breath and move forward to rebuilding your credit, and your financial stability. When looking for a Chicago bankruptcy attorney, focus on the positive and let them help you rebuilt your financial life.