Filing for bankruptcy can be the turning point in one’s financial life. When an individual or a business is struggling financially, they may want to consider filing for bankruptcy in an effort to overcome the significant amount of debt that has accrued over time and allow them to get a fresh start. Bankruptcy is one of the best tools that an individual or a business can use when they are concerned about being unable to pay back debt because it can stop harassment from creditors, put an end to a foreclosure, and be the breath of fresh air that a person with significant debt needs.
One question that many people have when they are considering bankruptcy is regarding what happens after the bankruptcy process is over. Some people find themselves concerned about how long bankruptcy will stay on their credit report as well as whether they will be able to take out additional loans or credit cards. New statistics were recently released by LendingTree, showing that 65 percent of individuals who filed for bankruptcy had a credit score of 640 or higher within just two years. It is very important for an individual who has recently finished the bankruptcy process to obtain a secured credit card so they can begin building their credit score once again. This should be used for small, manageable expenses such as the gas for a vehicle or a subscription service. The balance should be paid fully and on time each month to ensure credit is rebuilt quickly. After such a significant increase in credit score, many people are even able to obtain a mortgage after just three years.
If you have questions about how bankruptcy can be beneficial to your financial situation, contact us today.
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.