ANNOUNCEMENT: Please note that our staff here at Iacullo Martino are dedicated to your legal needs and available during this difficult time. In order to do our part to help stop the spread of COVID-19, we will be conducting virtual meetings with both new and existing clients. To speak to an attorney, please click HERE. To help ease the burden of current circumstances, all consultations will be free. Please take care and be safe.

Can you rebuild your credit score post-bankruptcy?

A lot of people are facing financial struggles this year that they never thought were possible. Others have been trying to claw their way out of debt for years. Regardless of how long your debt woes have been hanging over you, you might have the ability to secure the fresh financial start you deserve by pursuing personal bankruptcy. We know that a lot of people shy away from the term “bankruptcy” because it has a lot of stigma associated with it, but you should fear the process. We think that once you familiarize yourself with what bankruptcy can do for you and what it doesn’t do to you, you might find that it’s the best option to give you the relief that you need.

But what about my credit score?

We hear this question all the time. A lot of people are worried that if they file for bankruptcy then their credit score will be unredeemable. These individuals fear that they then won’t be able to get the credit they need to buy a house or a car, or that they’ll be hit with enormous interest rates when they do.

While it’s true that a bankruptcy will affect your credit score for some time to come, there are things that you can do to rebuild your credit score. Each of the following might help:

  • Pay your non-discharged debts on time
  • Seek new credit sparingly
  • Consider having a co-signer on new loans
  • Keep balances on lines of credit low
  • Avoid changing jobs frequently

Remember that rebuilding your credit is going to take some time. Slow and steady will get you to where you want to be. The important point here is that you can rebuild your credit score post-bankruptcy.

Have your questions answered

If you’re considering personal bankruptcy, then you’ve probably got a lot of questions. You deserve straightforward and honest answers. That’s why legal teams like the one at our firm stand ready to help guide you through the process, educating you every step of the way so that you know exactly what you’re getting into and which decisions are in your best interests.