Credit Card Defense Lawyer
Even if you feel like your life is falling apart due to debt collectors breathing down your neck and the mountain of bills you have accumulated, choosing to file for a Chapter 7 or Chapter 13 bankruptcy is not the end of your financial life. Despite the stress that opting for file for bankruptcy may cause, it can also be a fresh start and the opportunity to move forward with your financial future.
Here is how to rebuild your credit after you file for bankruptcy.
How Do I Start to Repair My Credit After Bankruptcy?
After you file for bankruptcy, lenders wish to see that you have enough income to support your daily needs and have a bit left over. A lighter debt burden makes for a more attractive borrower.
The first thing that you need to do to repair your credit after you file for bankruptcy is to create a budget that will help you stay aloft of your finances. Include every item you need to pay for, including rent or mortgage, utility bills, and food. Never go over your budget and always live within your means. You should write down everything you spend your money on in order to see visually see where it is going.
You should also start to build an emergency fund. Studies have shown that having as little as $250 in savings can greatly protect you from resorting to loans or turning to your credit cards.
People who have filed for a Chapter 7 or Chapter 13 bankruptcy need to be vigil about their credit report. You can check your credit for free online with many agencies. Your bankruptcy filing will show up on your credit report for seven to 10 years.
Should I Get A Secured Credit Card?
Yes. After your bankruptcy goes through, you need to start building better credit. A good option to do this is to open a credit account that you can strategically use to slowly build your credit. Creditors provide secured credit cards to high-risk borrowers to help them build better credit.
To do this:
- Apply for a secured credit card online.
- You may need to put down a deposit in order to open the line of credit. On many cards, the credit line equals the deposit.
- Make tactical purchases on the card that you can pay off quickly. Additionally, never leave a balance on the card that is over 30% of your available line of credit.
Should I Get Legal Advice?
If you have already filed for bankruptcy, the chances are high that you used the services of a qualified credit card defense lawyer Tampa, FL relies on. They can also offer tips on how to rebuild your credit after bankruptcy.
Thank you to our friends and contributors at The Law Office of Michael A. Ziegler, P.L. for their insight into bankruptcy and how to rebuild your credit.