How Can I Rebuild My Financial Health After Filing for Bankruptcy?
Filing for bankruptcy is a position that no one wants to be in. You may be flooded with shame, guilt, or panic, wondering how you could find yourself in this situation and how you can get yourself out of it. Bankruptcy is not as uncommon as one may think, and it is not impossible to recover from. Whether you are filing for Chapter 7 or Chapter 13 bankruptcy, the financial process will leave a stain on your credit, but a qualified attorney can help you repair these damages so that you can build a stable financial position for the near future.
Repairing Your Credit
Your credit score can be a determining factor in your financial freedom, and after filing for bankruptcy, it can take some time to regain your stability. Whether you are looking for approval to make a large purchase or need a reputable score to find a new place to live, you should do the following to repair your credit over time:
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Your Credit Report Should Show Your Bankruptcy: You may be hiding the fact that you filed for bankruptcy to avoid others’ opinions or judgments on the matter. While this may be a good idea for family or friends, it is not something that you should do on your credit report. If your credit report does not reflect your filing for bankruptcy, it will display all of your outstanding balances and missed payments. Once the bankruptcy is reflected on the report, your outstanding balance will be $0. Creditors may continue to show this negative account information immediately following your bankruptcy charges so checking your credit report every few months is always a good idea.
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Non-Bankruptcy Accounts Are Just as Important: When filing for bankruptcy, not every one of your accounts can be included. Anyone with student loans cannot usually have these charges included in their bankruptcy. It is important to continue paying off these types of accounts in the meantime to avoid additional late payments damaging your credit score. All accounts should be paid in a timely manner to avoid a negative impact on your financial health, both on your report and your bank account.
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Do Not Trust Credit Repair Claims: You have likely been targeted by advertisements promising assistance with repairing your credit score. These promises are rarely fulfilled and in many cases, you will find yourself paying a company for help but not receiving any results. Any company that claims they can remove the bankruptcy from your credit report is not telling the truth—it takes seven to 10 years for your bankruptcy to be removed from your credit report.
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Keep a Steady Job: There are a number of reasons why a consistent paycheck is the best way to repair your financial reputation. The stability of a regular paycheck is the most reliable way to pay off all debts and keep your accounts afloat. Maintaining a steady job is also beneficial when looking for a lender. Changing jobs may not affect your credit score, but holding a position for a period of time shows responsibility and your ability to bring in a paycheck consistently.
Contact a Rockland County Bankruptcy Lawyer
Many people will avoid filing for bankruptcy out of fear that their credit score will forever be damaged. While filing for bankruptcy does affect your score, it is possible to repair the harm and it may be your best bet for obtaining a fresh financial start. At the Law Offices of Robert S. Lewis, P.C., we help clients explore their financial options and navigate the bankruptcy process if they choose that route. With over 35 years of experience, we can help you with the legal side of bankruptcy so that you can focus on repairing your finances and credit score. If you are considering filing for bankruptcy, contact our Hudson Valley Area bankruptcy attorney at 845-358-7100 for a free consultation.
Sources:
https://www.thebalance.com/how-to-repair-credit-after-bankruptcy-960380
https://www.investopedia.com/articles/pf/07/after-bankruptcy.asp
