Will Filing Bankruptcy Hurt My Credit?
Myth: Using credit cards are a great way to rebuild your credit after filing bankruptcy.
Fact: Credits cards will hurt your credit more than help if you don't use them properly. You shouldn't take out too many cards or charge more than 50 percent of the available balance on each card. In addition, you need to make your payments on time.
At the Law Office of Colby J. Leonard in Indianapolis, Indiana, we're here not only to help you file bankruptcy. We're also here to help you rebuild your credit after you file for bankruptcy through credit counseling. We also offer bankruptcy alternatives, such as debt settlement, that will reduce the impact on your credit.
How Long Does It Take to Re-Establish Credit After Bankruptcy
Your credit score will take a hit as a result of filing bankruptcy. However, once you file bankruptcy, you can start to rebuild your credit almost immediately:
- You will usually be able to obtain credit cards immediately after filing bankruptcy, although these won't have the best interest rates they allow you to start re-establishing your credit.
- You will usually be able to obtain car loans immediately after filing bankruptcy, but your interest rates may be higher.
- Within a year or so of paying your bills on time, you will usually be able to start getting reasonable interest rates on loans.
- If you filed Chapter 7 bankruptcy, you can qualify for an FHA loan at conventional rates after two years (three years if you surrendered a home).
- If you filed Chapter 13 bankruptcy, you can usually qualify for a loan after 12 months.
Did You Know?
- In our experience, 80 percent of credit reports still contain at least one error on them after receiving a discharge in bankruptcy. Even if we didn't file your bankruptcy, if your credit report shows a discharged debt as still being owed, the Law Office of Colby J. Leonard can help you remove it.
- The Law Office of Colby J. Leonard is constantly expanding their list of contacts to assist their clients in qualifying for loans and re-establishing their credit after filing bankruptcy.
Free Attorney Consultation
If you are facing credit problems, you have nothing to lose by seeking a lawyer's advice. You have a lot to lose by postponing it. Call 317-622-0385 (866-654-5889 toll free) or fill out the contact form on this Web site to arrange a free initial consultation with the Law Office of Colby J. Leonard. We have offices in Indianapolis and Muncie, Indiana.
"We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code."
