Hello, my name is Susan Farris and my hobby is learning about the law. I have an uncle who is an attorney and I've always looked up to him and that's why I find subjects on law very interesting. Through speaking with my uncle and doing research on my own, I've learned about all the different fields of law. Each field of law centers on its own subject and most attorneys specialize in a certain area of law. These include criminal, personal injury, family, bankruptcy, criminal, immigration and business. I find each one of these fields very interesting and I have the utmost admiration for lawyers because they help people through their legal struggles. I wanted to share this information with others who have questions about the different types of attorneys and the law.
Filing for Chapter 13 bankruptcy can be intimidating. It can feel like a daunting task, and it's one that will remain on your credit report for years. But the truth is, there is hope. While bankruptcy may damage your credit score in the short term, it's possible to rebuild your credit after filing for Chapter 13 bankruptcy.
Are you thinking about seeing a Chapter 13 bankruptcy attorney but want to make sure you'll have options after you file? Here's what you should know.
Keep Your Credit Utilization Low
The first step in rebuilding your credit score post-Chapter 13 bankruptcy is to be mindful of your credit utilization. Your credit utilization ratio should remain low. For example, if you have a $1,000 limit on one of your cards, you might decide to never exceed $300 in charges each month.
This will help show creditors that you are being responsible with your credit. It will also help you pay your bills on time and lower the chances of adding to your already existing debt.
Pay Your Bills On Time
It's important to make sure that all payments are made on time, including those related to your Chapter 13 bankruptcy plan. These timely payments will reflect positively on your credit report and will show future creditors that you are capable of being financially responsible.
Rebuild With Secured Credit Cards
One way to rebuild your credit score after filing for Chapter 13 bankruptcy is to open a secured credit card. A secured credit card requires a deposit and allows you to borrow against it, up to the amount of the deposit. Since this type of card is backed by your own money, it minimizes the lender's risk and makes them more likely to approve you.
Develop Good Financial Habits
Finally, in order to rebuild a good credit score post-bankruptcy, it's important to develop healthy financial habits. That means budgeting, monitoring spending, and avoiding unnecessary purchases.
Your Chapter 13 Bankruptcy Attorney Can Help
Rebuilding your credit after filing for Chapter 13 bankruptcy is possible, but it requires discipline and patience. The first step is to make sure that filing for bankruptcy is actually the best option for you.
If you're considering filing for bankruptcy and want to make sure you have options post-filing, talk to a qualified Chapter 13 bankruptcy attorney about your situation. They can help guide you through the process and ensure that you have a plan for rebuilding your credit. For more information, contact a Chapter 13 bankruptcy attorney near you.
Share30 November 2022
