If you’ve been living in debt for numerous years, the feeling of finally being free of it after filing for bankruptcy can be incredibly liberating. You now have a clean slate to start rebuilding your life and start making better financial decisions as well as attain those things that once seemed out of your reach, like a loan.
As liberating as it is to be debt free, there are still a couple of things you’re probably going to have to wait a bit for, especially in regards to your credit. For example, if you filed for Chapter 7 bankruptcy, the filing can remain on your report for up to ten which will negatively affect your score. Because of this, lenders may be more reluctant to give you even a basic loan. A Chapter 13 bankruptcy will only stay on your credit report for seven years.
Speaking of a Chapter 13 bankruptcy which involves debt re-organization, you’ll need to develop a very strict budget for the next few years depending on your bankruptcy terms. The court will regulate your income until your reorganized debts are paid and once these debts have been satisfied you’ll be free to use your paycheck however you see fit.
You may wish to stay away from unsecured credit cards for a few years as these cards will usually carry very high interest rates and fees. If you wish to rebuild your credit faster, consider applying for a secured credit card instead.
This information is provided by Miami bankruptcy lawyer Alonso, Perez & Santos, LLP. Our areas of practice include bankruptcy, debt harassment, credit card defense, foreclosure defense, immigration law, insurance litigation, business start-ups, and more. Call 305-676-7545 to speak with one of our Miami bankruptcy attorneys and receive a free consultation. We look forward to working with you.
This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.