Credit Card Defense Lawyer Clearwater, FL
Rebuilding Credit after Bankruptcy
Perhaps one of the heaviest things weighing on your mind if you are thinking of filing for bankruptcy is what the future will hold. You will have a number of questions surrounding the process of rebuilding your credit following a bankruptcy. The reality is, this process can take time, but there are steps you can take towards this following the resolution of your bankruptcy. The Law Office of Michael A. Ziegler, PL are Clearwater FL credit card defense lawyers with extensive legal experience in working with people who find themselves in financial trouble. Let us help you resolve your outstanding debts through bankruptcy so that you can move forward in rebuilding your credit.
What Is Personal Bankruptcy?
As a credit card defense lawyer can explain, there are two primary forms of personal bankruptcy that people may file for: Chapter 7 (Liquidations) or Chapter 13 (Reorganizations). Bankruptcy gives a person the opportunity to relieve themselves of the debts they owe creditors when they are no longer able to afford to do so.
For a person to file Chapter 7 they must meet specific criteria. Those filing for Chapter 7 must be able to show that they have been through credit counseling and that their extra income every month is not enough to cover their debts. This is usually sorted out through a means test. In Chapter 7 bankruptcy, the majority of a person’s debts are discharged.
Chapter 13 bankruptcies usually provide a person with a payment plan in order to pay off the majority of their debts. This usually occurs over a three- to five-year span. Once this time has passed, the rest of the person’s debts are usually resolved. Chapter 13 is available to people who have a median income that is higher than that of their state. In these situations, it’s likely that they did not qualify for Chapter 7 due to their income.
Will I Be Destitute After My Bankruptcy Filing?
The purpose of bankruptcy is to give a person a new financial start. People often worry that after bankruptcy they will not be able to afford even to meet their basic needs such as food, clothing, and shelter. The idea is not to leave a person homeless and penniless. Bankruptcy is a way of absolving outstanding debts and living a life free from the constant calls you may have been receiving from creditors.
Following bankruptcy, you will begin to rebuild your credit. While the blemish of a bankruptcy will remain on your credit report for up to 10 years, it doesn’t mean that you can’t take steps to put yourself in good financial standing:
- Open a checking and savings account
- Pay ALL of your bills on time
- Although the interest rate may be high, apply for a credit card. Use it to make purchases, but never spend beyond your means. Pay this card off every month. This will help build your credit score.
- In some situations, it may make sense to have someone cosign on a loan with you. This can also be a good way to rebuild your credit.
- Keep a close eye on your credit score
- Build up a savings account
Filing for bankruptcy can be a stressful time for you and your family, let us help you resolve your bankruptcy so that you can put this all behind you. Call the Law Office of Michael A. Ziegler, PLso that we can help you resolve your bankruptcy. The process can be complicated; by enlisting the services of a credit card defense lawyer Clearwater, FL clients recommend, we can help you to complete the necessary paperwork and advocate for you to ensure that you have the best possible outcome.
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