So I Filed For Bankruptcy – Am I Ruined Forever, Financially?

The decision to file for bankruptcy is not an easy one. It is not necessarily the easy way out that some people may think it is. It is a decision that requires consideration of all of the facts surrounding your individual circumstances as well as how it will affect you as you move forward. It is important to know, however, that it may be the best – and sometimes, the only – solution to a seemingly impossible problem.

The Effects Of A Bankruptcy On Your Credit Report

Bankruptcy will not ruin your credit forever, but it will stay on your credit report for up to 10 years. This does not mean that you will not be able to qualify for credit for those 10 years and, in fact, it may be easier to obtain credit post-bankruptcy than prior to a bankruptcy. This is because creditors know that you are in a better position to repay debt when starting with a clean slate. Your credit may actually improve post-bankruptcy, depending on your individual circumstances.

Will I Be Able to Get a Loan After A Bankruptcy?

The most important factors a lender considers when deciding whether to extend credit are your current income and expenses. In cases in which your bankruptcy was a result of factors that are not likely to recur, such as debt that stemmed and snowballed as a result of illness, unemployment, or divorce, lenders are often more willing to extend new credit. Obtaining a line to get a car, for example, is something that is often achievable not too long after a bankruptcy is finished.

How Can I Rebuild My Credit After A Bankruptcy?

If you do keep any debt out of your bankruptcy, it is imperative that you make regular, consistent, timely payments in order to help re-establish your credit. Rebuilding your credit is essential to regaining your financial freedom. If you are planning to start out with a fresh slate, it is necessary to obtain new credit, possibly through a secured credit card, to make small purchases and establish a pattern of responsible credit management by paying the debt back on time – early, if possible. Obtain and check your credit report regularly to be sure there are no errors and, if errors occur, taking action to correct them is imperative.

Okay, I Have Considered My Options, Now What Do I Do?

If you have reached the point where you are drowning in debt and you want to take steps to improve your financial future, speak with a bankruptcy attorney who can provide you with all the information you need to make an informed decision. At Whitten & Whitten, we have the information you need to help you to make the right decision for your financial situation. Call us at 219-756-0555 or contact us online today to find out how we can help you regain your financial footing and be able to look forward to a brighter financial future.