Bankruptcy has a variety of consequences, but a lack of any credit after filing is not one of them. Many people are under the mistaken impression that after filing for bankruptcy, they will be unable to obtain any credit for years and years to come. This is simply not true. Do not let this myth that filing bankruptcy will prevent you from ever getting credit again stop you from making a crucially important life decision. While filing for bankruptcy will undoubtedly result in a negative impact on your credit score, it is by no means the end of any financial credit responsibility.
The falsity of this fact is one prime example of why it is important to consult an experienced bankruptcy attorney if you are considering filing bankruptcy in Indiana. An experienced attorney can help you to understand the real consequences and differentiate between the myths and untruths and the reality of filing for bankruptcy. Furthermore, an attorney could help you to understand ways in which you might positively impact your credit score in the future.
Bankruptcy in Today’s World
While a lack of credit may have been the fate for those who filed bankruptcy twenty or thirty years ago, today’s bankruptcy world has changed dramatically. Many people are able to obtain new car loans or mortgages soon after, or even during the bankruptcy filings. You may be wondering how this is possible, or you might be asking why anyone would extend a line of credit to someone who has just filed bankruptcy. The answer is quite simple: in most cases, after filing for bankruptcy, a person must wait eight years before filing for bankruptcy again. That is a significant amount of time in which to obtain money from the person.
While it is possible to get a line of credit after bankruptcy, it is important to keep your debt in check. Be sure to pay off your cards every month and avoid accruing any excess debt. While bankruptcy can help you rebuild your credit, it is not a free pass. The most important thing is to use your credit responsibly in order to build it up as time goes on. By building on your credit after bankruptcy, you can be on your way to good credit and avoiding more financial troubles and future bankruptcy problems. A bankruptcy attorney can help you to understand how to rebuild your financial portfolio and credit after bankruptcy. Read this Huffington Post article to learn more about how to rebuild your credit after bankruptcy, or this article from Fox Business.
Reach Out to an Attorney for Help
If you or someone you know is either considering bankruptcy or has gone through bankruptcy and is attempting to rebuild credit, talking to an experienced bankruptcy attorney can be the key to success. Contact our office or visit our office’s website to learn more about your options and see how we may be able to help you in your bankruptcy proceedings or in rebuilding your credit after bankruptcy.