When bills are piling up and you feel in over your head financially, you may not be looking at the silver lining that comes with filing for bankruptcy. However, in a very real way, filing for Chapter 7 or Chapter 13 bankruptcy is like a financial “do over.”
As soon as you make the decision to file for bankruptcy protection, you can immediately plan a strategy to start rebuilding your credit. It won’t be the easiest thing you’ve ever done, but it’s far from impossible. In fact, you will be surprised how quickly banks will offer you secured lines of credit. Others might agree to loan you money but at a very high interest rate. It will be hard to get credit at first, but it won’t be impossible, here’s why:
- After filing for Chapter 7 liquidation bankruptcy, your debt-to-income ratio will be immediately lower.
- Since you can’t file for another Chapter 7 for eight years, lenders will see you as a better risk.
However, Joel R. Spivack, Esq., an experienced bankruptcy attorney in Cherry Hill, has some advice for consumers looking to re-establish credit. Don’t try to borrow too much too soon. Make timely payments on a couple of lines of credit to build up your credit score and soon be able to get better terms (lower interest rates.)
Contact Mr. Spivack today for a free phone consultation about your financial situation. He can help you decide in bankruptcy is right for you and can also help you create a plan to re-establish your credit. He has been helping clients for over 20 years. He can help your family, too.