Many people who are struggling to pay their credit card debt, personal loans or medical bills often try to find local bankruptcy lawyers to speak with them. Many times individuals who are looking for a bankruptcy lawyers in New Jersey or bankruptcy lawyers in Staten Island, always want to speak with a local lawyer to be reassured that if they decide go forward with filing bankruptcy, their life won’t be ruined forever. As a New Jersey bankruptcy lawyer and Staten Island bankruptcy lawyer, that files many bankruptcy cases, I can tell you first hand, that life after bankruptcy for most is a lot better than what it was before they filed.
Will I Be Able to Get Credit Again If I File Bankruptcy?
One of the most asked questions we get is “Will I be able to get credit again if I file bankruptcy?” Fortunately, the asnwer is yes. Many individuals read information from debt settlement companies online that say that if you file bankruptcy, you won’t ever be able to get credit again. This is completely false. Most of our bankruptcy clients extend credit as soon as our client receives a bankruptcy discharge. Filing bankruptcy will not ruin your life forever. Mortgage lenders, motorvehicle lenders, and credit card companies will not automatically not lend credit because you filed bankruptcy. Bankruptcy laws were enacted to help individuals who needed a fresh financial start. The very purpose of bankruptcy is to allow people to get back ontheir feet. Thus, filing bankruptcy can be a great step in the right direction.
When individuals file bankruptcy often times their credit score goes up. This is because credit bureaus take into consideration debt to income ratio. After a bankruptcy is filed an individual has no debt. Thus, credit scores in some scenerios actually increase after filing bankruptcy.
Filing Bankruptcy In New York & New Jersey
After filing bankruptcy, you may want to begin to rebuild your credit. The first to to pull a credit report. A credit report can help you determine where you stand financially. It is best to pull a credit report from the three major credit bureaus – Equifax, Experian and Transunion. Double check that all of the information on your credit report is listed correctly. You can also go to freecreditreport.com to pull a free copy of your credit report. If you find any inconsistencies or something that seems incorrect you can dispute these findings.
Next, you will want to report any positive things to the credit bureaus. You may want to report things such as timely payments, employment history, salary, etc. All of these things can have a good impact on your credit score.
Next, we will advise you to start with a secured credit card. Many individuals believe that once you file bankruptcy, lenders will not extend credit again. This is false. After a bankruptcy discharge many lenders will begin sending secured credit cards in the mail immediately. A secured credit card can be a great way to begin rebuilding your credit after filing bankruptcy. To obtain a secured credit card, the lender will have you put money on the card. That money will then be used as collateral to help you make purchases. By buying items on the secured credit card and making timely payments this can help increase your credit score.
Secured credit cards are not the only types of credit cards that you will get after filing bankruptcy. Once lenders see that you are able to make timely payments, you will begin to get credit card offers in the mail again. Yes, these may be from some of the same companies that you just file bankruptcy with. Having one credit card and paying off the balance in full each month is a great way to rebuild your credit.
Another good way to help you rebuild your credit, is to have someone put you on their card. If the person who adds you has great credit, it may help raise your credit score significantly.
Keep in mind, that life after bankruptcy is easier to manage for most people. With no credit card debt, you can begin saving immediately. Debt keeps people up at night and causes mental and physical stress. By filing bankruptcy you will be at peace knowing creditors will no longer be suing your or harassing you. If you decide not to file bankruptcy but continue to walk around with debt, you run the risk of going through all of your savings, having bad credit scores, and maxing out credit cards. You also, will risk creditors getting judgments against you and wage garnishments. Filing bankruptcy is a good way to help you start over.
Karra L. Kingston Esq. has helped many people get out of debt and start their life over. If you are worried about how bankruptcy will impact your life, give us a call today. Our bankruptcy lawyers will be able to explain how you can rebuild your credit score after filing bankruptcy. Our New York bankruptcy lawyers practice in the five boroughs. Our New Jersey bankruptcy lawyers assist people all throughout Nothern, Central and South Jersey. Call us today for a free debt consultation.