One of the foremost concerns of anyone considering filing for bankruptcy is the degree to which it will affect their credit score. This, of course, makes sense given the many myths out there on this topic and the degree to which society as a whole relies on readily accessible credit.
The simple truth is that while filing for the fresh start provided by Chapter 7 bankruptcy will have an effect on your credit score — the degree depending largely upon your individual circumstances — this effect will likely prove to be only temporary.
Indeed, it must be remembered that the entire point of filing for bankruptcy is not to leave a person financially worse off, but rather to provide them with the means to secure a truly new start on their financial life.
To that end, there are steps that a person can take to begin rebuilding both their credit and their financial wellbeing sooner than later in the wake of filing for bankruptcy.
- Secure a free copy of your credit report from one of the three main credit agencies in order to ensure there are no errors and, more significantly, to get an idea of where you stand financially.
- Apply for a secured credit card and abide by Credit Card Tactics 101, meaning spend wisely and pay off your entire balance every month to avoid incurring interest.
While it may seem counterintuitive — and perhaps even a bit frightening — to secure another credit card so soon after filing for bankruptcy, experts indicate that months of timely payments on a credit card can slowly start to pay dividends, as your credit score will start to rise and more favorable terms for loans will be offered.
If you have any questions or concerns related to Chapter 7 bankruptcy, please consider speaking with an experienced legal professional to get the information you need and deserve.