Many potential clients call us and ask if bankruptcy will prevent them from getting lines of credit in the future. Many are concerned about being able to obtain future auto loans or realizing their dream of owning a home.
Credit Card Offers
You may be surprised to hear that shortly after bankruptcy, you will likely receive credit card offers. This is because creditors know that you will not be eligible to file bankruptcy again for a period of time. The risk of these offers, is using that credit and getting right back into debt where you started. One recommendation our office has, is to utilize a secured credit card to rebuild credit.
Many of our clients ask us what will happen to their credit scores. Initially after the bankruptcy is filed, the score will take a significant hit. However, the score rebounds very quickly. If you run your credit after filing bankruptcy, you will notice all accounts begin to report a zero balance, including accounts such as vehicle loans that are still active. These accounts will not report to credit during or after the bankruptcy.
Your score will begin to rebound very quickly. That first rebound will be directly due to your debt to income ratio. Overtime you can rebuild your credit, and many of our clients are able to purchase homes within a few years of filing bankruptcy.
For more information about obtaining your fresh start, contact your local Fairfield bankruptcy attorney.
Categorized in: Credit