Contrary to popular belief, it is possible to rebuild your credit rapidly after the filing of a Bankruptcy Case. Yes, some restrictions such as restrictions on Mortgage applications will apply. But, the good that will come from receiving a discharge via a Chapter 7 or Chapter 13 Bankruptcy case will far outweigh the bad. A Bankruptcy does continue to be reported on your credit report for 10 years, that doesn’t mean will never obtain credit again.
Many of my clients have the false impression that after their bankruptcy case is over, they will never be able to rebuild their credit. That is simply not true. The reason they believe this is because your creditors want you to believe this. In fact, many times you will receive credit offers after the Discharge order comes though. The reason for this is that Creditors want to stick to you to high interest rate credit cards and if you default, they will sue you and make their money back 10 fold on the interest.
If you use your credit wisely after the Discharge by taking on small debts in your name and paying them off every month, you will quickly build back your credit worthiness. Your credit score is all about credit availability. The more available credit you have out there, the higher your score will be. This is why you hear many people say it is not a good idea to close out a credit card.
Essentially, it is always better to Discharge your debt and start over with your credit status rather than struggle to rebuild it if you have no ability to pay off the debt.
If these circumstances sound familiar, please call us up for a Free Consultation (248)557-7488.
