Bankruptcy attorneys offer an opportunity at a life without debt. In order to make the most of it, though, it is important to prepare for your life after your bankruptcy attorney in Chicago has completed his or her work and your debts are discharged. A notation of your bankruptcy will appear on your credit report for 10 years, but that doesn’t mean that you won’t be able to get new credit during that time.
Getting credit after bankruptcy is important because you need to use credit responsibly in order to increase your credit score. The problem is that lenders and credit card companies will see you as a high risk borrower and may deny your application. Lenders who are willing to give credit to post-bankruptcy customers typically do so with very high interest rates. If you accept a credit card offer, it is vital to pay your bills on time and use the budgeting skills you learned in your bankruptcy credit counseling to manage your debt.
Though experts advise bankruptcy filers to get a credit card right away, you may need to wait a while before you apply for a mortgage or a car loan. If you are not able to get an unsecured credit card, invest in yourself and get a secured card. Find a card that reports to the credit bureaus so your on-time payments will be reflected on your credit report. By using your secured card responsibly, you will show potential lenders that you are a good credit risk and you may get better offers in the mail after six months.
Your bankruptcy attorney in Chicago can guide you through the steps to getting your bankruptcy filed and discharged. While you may feel immediate relief when you make the decision to file, you will have to make a diligent effort to restore your credit rating to a point where you will be considered a good credit risk. Though it may take a few years of responsible credit use, you will likely be able to purchase a home and a car after you file Chapter 7 or Chapter 13 bankruptcy. Browse Visit the website for more information.
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