Rebuilding Your Credit Score
One reason many people wait too long to consult with an attorney about filing bankruptcy is they fear they’ll never be able to recover from it. That’s simply not true. In fact, bankruptcy is designed to help people reset their financial lives and return to financial stability. In doing so, they can rebuild their credit score, often much quicker than expected.
At the Law Office of Scott C. Polman, in Niles, Illinois, I don’t just help my clients navigate the bankruptcy process. I help them hone their financial habits and develop a comprehensive plan that can lead to a higher credit score. That begins by checking your credit score through one or more of the three credit bureaus to see where you stand. In doing so, you may discover mistakes that can be corrected, which can help improve your score relatively quickly.
Rebuild Your Credit
Other steps that may make sense to improve your credit score include drafting a detailed budget of monthly income and expenses, staying within that budget, and even applying for a new credit card post-bankruptcy.
Yes, you will probably receive credit card offers soon after you complete your bankruptcy, and they come with an annual fee, low limits and high interest rates. It’s very important to stay disciplined and committed to the constraints of your monthly budget, and avoid a monthly balance on a new card, so that the interest rate doesn’t affect you. At the same time, you’ll receive a positive impact on your score for consistent, on-time monthly payments. It’s a slow, gradual process, but your score can improve if you make the right decisions.
Bankruptcy may impact your credit score for up to 10 years, but you can start rebuilding your creditworthiness immediately. The sooner you get started, the quicker you’ll rebound. Working with a knowledgeable bankruptcy lawyer will help you make all the right moves.
Start Rebuilding Today
BAPCPA disclosure: My firm is a debt relief agency as designated by federal law. We help people file for bankruptcy relief under the Bankruptcy Code.