Loans And Credit After Bankruptcy

Choosing to file for bankruptcy is a major decision most people don't make lightly. It only happens after carefully considering their options and after speaking with a experienced bankruptcy attorney. But even if someone is feeling good about their decision to discharge their debt, they may still have concerns about their financial future, particularly what life will be like after bankruptcy.

How Can Bankruptcy Help Rebuild My Credit?

A common misconception that people have about filing for bankruptcy is that it will ruin their credit for years. For most people who have come to the point where credit is no longer being offered to them, the damage to their credit scores has already been done. Past due accounts and a high debt-to-income ratio have lowered your score.

After bankruptcy, credit can begin to be reestablished. Your bankruptcy will be the only negative mark on your credit following Chapter 7 bankruptcy. Those past due accounts and high levels of debt will be wiped away. With those negative elements missing from your credit report it can begin to recover.

A Chapter 13 bankruptcy petition will allow you to begin taking control of your debts. Chapter 13 takes your debts and creates a three- to five-year repayment plan during which time the goal is to pay an affordable portion of your debts. With the successful completion of your repayment plan you will be discharged from bankruptcy. Upon discharge, lenders will see you as less of a risk and a viable customer again.

Will I Need To Re-File For Bankruptcy?

This depends on how you choose to manage your spending and debt obligations after bankruptcy. Learning to manage your debts better and making smarter decisions about your spending will determine whether you can stay in the black for years to come or whether you will need to speak to a knowledgeable bankruptcy attorney down the road.

File Right The First Time With Kruger & Schwartz

At Kruger & Schwartz, we answer all of your bankruptcy questions and make sure you have the information you need to make smart debt-relief decisions. The guidance and advice we give during our free initial consultations and after our services have be obtained help our clients move on with their lives and avoid future bankruptcy filings.

For help in the Louisville metro, call our Kentucky office at 502-485-9200. For assistance the New Albany area, call our Indiana office at 812-945-9200. You may also contact us by email or call toll free at 866-366-3328.