Chapter 7 bankruptcy is the most common form of consumer bankruptcy because the process from filing to discharging debt only takes about 3 to 6 months. Although bankruptcy can be extremely helpful for families who are overwhelmed with debt, many people choose not to file because they fear the effects that bankruptcy will have on their credit score. However, the truth is that leaving your debts unpaid will cause even more damage to your credit score and your family’s financial future than filing for bankruptcy.
Rebuilding Credit After Chapter 7 Bankruptcy
A Chapter 7 bankruptcy will stay on your credit report for 10 years; however, in most cases, this doesn’t affect your ability to build new credit and move on with your life. Many debtors start receiving credit card offers shortly after they receive their discharge. Although you'll likely receive credit offers after your debt discharge, be wary of these offers. Many new credit card offers will have low limits and high interest rates, so it is important to review the offer terms carefully before signing up for a new credit card after bankruptcy.
The best option to rebuild your credit is to open a secured credit card from your bank. A secured credit card is a credit card backed by a secured payment used as collateral on the account. This is a safe, simple method to rebuild your credit while avoiding high interest rates and annual fees.
Seek Guidance from Our Experienced Fort Worth Bankruptcy Attorney!
If you’re concerned with your financial situation and you’re worried about how you will rebuild your credit after declaring bankruptcy, you can get the help and guidance you need from an experienced bankruptcy lawyer in Fort Worth. At Huebner Law Firm, we understand that it is difficult to wrestle with enormous debt while providing for your family. We can help you make a path to financial freedom that suits your goals and your budget.Become financially free by contacting us today at (817) 576-1889 for a consultation!