When you file for bankruptcy, your credit will take a big hit. However, with time and financial responsibility, you may be able to repair it. Credit is one of the most important financial aspects in your life and can have a serious impact on whether or not you are able to buy a home or a car, start a business or take out any type of loan in the future.
When you default on your debts through bankruptcy, your credit score will dramatically decrease. However, don’t be afraid to file for bankruptcy. Your credit can be repaired over time.
Most people are able to re-establish their credit in a few years. Credit card companies know that you will probably want to rebuild your credit soon after you have completed the bankruptcy process so you can put this part of your life behind you. You will likely receive a number of offers for a new credit card because the companies know that you are in no position to miss payments and you want to rebuild your credit.
Although it may be intimidating to own a credit card again after filing for bankruptcy, you may want to consider getting one as soon as you can. If you do, you should only make purchases that you know you can afford in order to make at least the minimum payments each month. It doesn’t matter if you are only making small purchases as long as you are making the payments on them. If you have consistently made payments on time for the proper amount each month, your credit will start to build once again. If you are considering filing for bankruptcy, you should speak to an experienced bankruptcy attorney at Cohn, Lifland, Pearlman, Herrmann & Knopf, LLP.