Need Help Rebuilding Your Credit After Bankruptcy?

Contact the Team at Owenby Law, P.A. for a Free Case Evaluation

Unfortunately, there is no way to avoid the impact bankruptcy is going to have on your credit. For most individuals who have considered seeking debt relief through bankruptcy, most of the damage to their credit rating has been done well before they make the decision to file. However, that's not to say that a Jacksonville bankruptcy attorney will not be enormously helpful when the time comes to rebuild your credit.

There are helpful measures that you can take to bring your credit around after you emerge from Chapter 7 or Chapter 13. That's why Owenby Law, P.A. offers post-bankruptcy credit counseling services. We work meticulously to help clients find relief from debt and a fresh financial start. Part of this entails educating clients about their credit and helping them obtain the tools and resources to improve their credit for life.

Need help rebuilding your credit? Call (904) 770-3141 for a free consultation!

Understanding Your Credit Score & How It Works

Your credit rating is used to determine your eligibility to borrow money and the interest rate you will pay on credit cards, auto loans, mortgages, and more. Most landlords will use it to determine whether they want you as a tenant, and many employers are now checking the credit ratings of job applicants. Understanding what your credit rating is and how it works can help you make informed decisions about your finances.

Most people actually have three credit scores, because there are three major credit reporting agencies: Equifax, Experian, and TransUnion. Most people's scores fall somewhere on a scale from 300 to 850, with 850 being the highest possible rating. While each credit reporting agency uses their own systems and sources of information to calculate your score, all are calculated using credit history and debt-to-credit ratio.

Credit Restoration Steps You Can Take After Bankruptcy

Most people are under the impression that declaring bankruptcy will be the end of their credit worthiness, but that is simply not the case. While a bankruptcy will affect your credit score, it is important to understand that the severity of the impact diminishes over time and is not permanent. By practicing responsible financial habits, you can begin rebuilding your credit – even to levels higher than you had before bankruptcy.

In the months after you've emerged from bankruptcy, few lenders are going to want to extend credit to you because they will still deem you to be too great of a risk. It can be disheartening when you are turned down for a loan or denied an apartment because of mistakes you had hoped were finally in your past. There are things that you can do, however, which will enable you to restore your credit more expeditiously.

We advise our clients to do the following:

  • Open pre-paid debit card accounts
  • Establish joint-accounts with family members
  • Develop a strategy to increase their score

Many people believe that filing for bankruptcy means they will never be able to qualify for a loan again. While bankruptcy can show on your credit reports for up to ten years, you can begin rebuilding your credit immediately after filing for bankruptcy. Following through with the terms of your filing is important, and by sticking to the plan, your credit ratings will begin to improve each month that your payments are made on time.

Our Jacksonville Bankruptcy Lawyers Can Help – Contact Us Now!

The attorneys at Owenby Law, P.A. are aware of the importance of having credit in today's economy. And while you may need decent credit to acquire the goods and services that you require, the fact of the matter is that lenders also need to extend credit to earn interest and better market their products. There is, therefore, a powerful motivation on the part of creditors to begin loaning you money again. That's why it's possible to rebuild your credit by demonstrating responsible behavior with regard to spending habits and the timely repayment of debts.

If you need help restoring your credit, please give us a call today to learn more.