Wednesday, September 21, 2016
How Long Will It Take To Repair My Credit After I File Bankruptcy?
One of the biggest concerns most debtors have is that if they file bankruptcy their credit will be ruined forever. Most people think that once they file a case they will no longer be able to get a credit card, buy a car, or purchase a home. The truth, though, is that you will begin receiving credit offers very shortly after your case is over. While many of the offers will come with a higher interest rate than what you might be eligible for outside of bankruptcy, you will still have the ability to take out a loan. And while we do not encourage filing bankruptcy and immediately taking on fresh debt, we do understand the need to do so at times, and also the concern about how credit scores are impacted by filing bankruptcy.
Bankruptcy is an excellent legal tool to get you back on track financially, but it wouldn’t be fair to talk about bankruptcy without also mentioning your credit score. The notation you have filed bankruptcy does remain on hour credit report and does have an impact on your credit score, but it does not mean you are left without options. As stated, you are likely to receive new offers of credit quickly after your case is completed, and if you manage these debts well it can boost your credit score. Having a good credit score can do the following for you:
● Cause lenders to offer you loans at attractive rates.
● Allow you greater flexibility with in your financial planning by keeping certain expenses, like car insurance, lower.
● Help you with your housing needs, whether you are trying to rent an apartment or are trying to buy a house.
Your credit score plays a role in each of the above things, and many others that are too numerous to list. So, if you are fighting your debt every month, considering bankruptcy as a solution offers immediate relief while giving you the chance to rebuild your credit almost right away. For more information about the benefits of bankruptcy, call our office.
For more information about bankruptcy and your credit score, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.