Miami, Florida Credit Repair Attorneys

Rebuilding After Bankruptcy

Most people are under the mistaken impression that after you file for bankruptcy, it takes years to rebuild your credit. While it may take a few years to rebuild a solid credit score, most people are able to qualify for a low-balance credit card in the months following bankruptcy. If you manage to stay current on monthly bills, rent, or mortgage payments, you should be able to qualify for a credit line of $500. If you use the card responsibly and pay off balances in a timely fashion, your credit score will improve, qualifying you for loans and higher credit card limits. At Kingcade & Garcia, Attorneys at Law, we explain the steps you can take to rebuild your credit after declaring bankruptcy. Our office can request a copy of your credit report and identifies steps you can take to manage your money carefully and re-establish a solid credit score.

If you can no longer pay the minimum amount due on your credit cards, declaring bankruptcy may be your only option. Before you take out a second mortgage or transfer balances to a lower interest rate credit card, contact bankruptcy lawyers at Kingcade & Garcia today to learn how we can help you.

Rebuilding Credit after Filing for Chapter 7 Bankruptcy

People who qualify and apply for Chapter 7 bankruptcy may lose some of their personal property. Under the terms of Chapter 7, the court can sell luxury items and real property to recover some of what you owe creditors. However, after your bankruptcy has been processed and your unsecured debt removed, you can begin rebuilding your credit simply by staying current on rent payments.

If you have credit cards that you did not owe any money on prior to your bankruptcy, avoid putting charges on them. However, don't cancel them. If you close out credit card accounts that you don't use, this could adversely effect your credit score. As your credit score improves over time, you may be able to qualify for a home loan over the course of a few years.

Rebuilding Credit after Filing for Chapter 13 Bankruptcy

Chapter 13 bankruptcy involves a restructuring of personal debt, allowing you to pay a percentage of what you owe over a 3 or 5 year period. Consequently, most people filing under Chapter 13 are able to keep their home and their cars. If you maintain regular, monthly payments, you should be able to rebuild your credit fairly quickly. Once creditors see that you have managed to comply with your repayment plan, you should be able to qualify for small loans or low-balance credit cards. If you manage your finances responsibly, you should be able to rebuild your credit score over the course of a few years.

Need more Information? Contact Bankruptcy Attorneys at Kingcade & Garcia

Most people think declaring bankruptcy means long-term financial ruin. With the right kind of planning and accompanying responsible financial decisions, it doesn't have to. If you have questions regarding bankruptcy and rebuilding your credit, contact bankruptcy attorneys at Kingcade & Garcia today.