New Jersey Bankruptcy Lawyer Reestablishing Your Credit
One of the many concerns people have before they
file for bankruptcy in New Jersey is how it will impact their credit. A bankruptcy can appear on a person’s credit report for up to ten years, which can negatively impact their credit scores and their ability to: get credit cards, secure low interest rates, purchase a home or take out bank loans. It is critically important to note, however, that simply allowing your debts to accumulate or ignoring the situation will hurt your credit far more in the long run.
How to Rebuild Your Credit After Filing for Bankruptcy
While bankruptcy can lead to some financial setbacks, a skilled
New Jersey bankruptcy attorney can advise you on the numerous things people can do to reestablish their credit after filing for Chapter 7 or Chapter 13, such as:
- Many people are under the assumption that after they file for bankruptcy, they will never be able to get a credit card. This is a myth, as more creditors are willing to give people second chances. If you have filed for bankruptcy, one way in which you can reestablish your credit is by obtaining a credit line. You must then do everything you can to pay your credit card bill on time and should always try to pay your debt in full each month. Over time, you will re-build your credit and your credit score. Remember, you will want to live within your means and stick to a budget you can afford before securing new credit.
- If you are unable to secure a credit card by yourself, you may be able to get added to your spouse’s or another family member’s credit card account. As long as they pay their debts on time and have an upstanding credit history, your credit should rebuild with time.
- Another important step in reestablishing your credit is obtaining regular employment. You will want to be able to prove to future creditors that you have steady income and that you are responsible. Before any creditor will issue you credit, they will verify your employment, which is why it is so important to make sure that you have a set annual income.
- Finally, there are cases where people are denied credit lines, but are able to take out loans to purchase a car or property. In these cases, people should make their monthly payments on time and pay the full amount that is due. Over the course of time, positive payments will show up on the person’s credit report which will help them reestablish their credit.
Overall, the most important steps you can take are the most obvious ones: paying all of your bills on time and in full each month. This should prove to be much easier once you have declared bankruptcy and have a fresh start.
Contact a New Jersey Bankruptcy Lawyer at our firm to learn more about the variety of ways we can help you rebuild your credit score after bankruptcy.