Life After Bankruptcy

Fort Lauderdale Bankruptcy Attorney

Going through an extreme financial difficulty can be an incredibly stressful experience, and many people assume that after declaring bankruptcy, their lives will be easier and less complicated. While one of the major benefits of bankruptcy is that your financial obligations will not be so overwhelming, it is very important to realize that it is very easy to fall back into the situation that led to having to declare bankruptcy. With the proper advice from a Ft. Lauderdale bankruptcy attorney from The McCue Law Firm, you can escape the cycle of borrowing and focus on rebuilding your life and your credit.

Tips for Rebuilding Your Credit Following Bankruptcy

One of the most commonly believed bankruptcy myths is that filing will destroy your credit forever. You should realize that declaring bankruptcy is a step towards rebuilding your credit. One of the main factors credit reporting agencies use to determine your credit score is your debt to income ratio. Following a Chapter 7 bankruptcy, a large portion of your debt will be discharged, and instead of having more debt than your income can support, you will be free from the burden of having to devote a large portion of your income towards paying off debts. In a Chapter 13 bankruptcy, you will enter into a repayment plan that will pay off your debts in a certain number of years. It is not uncommon for individuals to receive new credit card offers only a few weeks after declaring bankruptcy.

While the interest rates these creditors offer will generally be as high as they can legally go, it is still a good idea to sign up for one of these cards. The important thing to remember is that you will not use this card for financial support, but for rebuilding your credit. Once you receive your first post-bankruptcy credit card, you should buy something modest with it, and then make regular monthly payments on the card. What you want to do at this time is to rebuild your credit history. Over the next few months, if you continue making on-time payments, you will eventual build a credit history that will prove to creditors that you are a trustworthy risk. It usually takes around 18-24 months to establish good credit, which increases your credit score and qualifies you for better interest rates.

Contact a Ft. Lauderdale bankruptcy attorney for more information about life after bankruptcy.