For some, bankruptcy is among the most fearsome terms in the English language, primarily because people associate it with having little to no money, as well as a destroyed credit score. While bankruptcy will hurt your credit score, this is nothing to fear–you can still rebound. Bankruptcy in itself is not a bad thing. Millions of people have filed for bankruptcy, kept many or most of their possessions, including their homes, and, in the long run, got their credit scores back to where they should be. If you have recently filed for bankruptcy and are looking to rebuild your credit score, please read on and reach out to our experienced New York bankruptcy attorney for some tips to rebuild your credit:
- Ensure you continue to pay off all accounts that were not discharged by bankruptcy, such as student loans, or any damages you had to pay relating to personal injury lawsuits
- Get yourself a new credit card. Though this can be difficult, certain credit card companies are more likely to trust you, such as store or gas credit cards. Once you obtain new credit, however, you must meticulously keep after your finances and ensure you make all your payments on time.
- If you have recently filed for bankruptcy, it is best to stay steady at one job, especially if you are looking to apply for a new credit line. Oftentimes, lenders will take the financial stability a consistent job generally indicates into account.
- When the time comes to apply for new credit, try and do so with a card you think you have a chance of being accepted for, and never apply for several at a time. If you are rejected for numerous credit cards, it will affect your credit score, and creditors will think you are frantically searching for credit.
- Co-signers are an excellent way for those recovering from bankruptcy to rebuild their credit. Essentially, a co-signer is a family member or friend who agrees to co-sign on cards or loans, earning you a better credit. However, if you do not keep a meticulous payment record in the future, your co-signers credit will also face ramifications.
- Do not listen to “credit repair companies.” They will promise you things that are either too good to be true or pretend they can assist you with matters that in actuality, you are perfectly capable of resolving yourself.
Within 10 years of filing, as long as you do the right thing and continue making payments on time, your bankruptcy should be officially wiped off your record for good.
Contact our experienced New York firm
Bankruptcy, for many people, is a frightening endeavor. Fortunately, with the help of an experienced attorney, it does not have to be. If you require the services of an experienced Business Law or Bankruptcy attorney, contact the Law Offices of Allen A. Kolber, Esq. today to schedule a consultation and discuss your options. We will have your back every step of the way.