For some people, bankruptcy is the right option for alleviating stressful financial situations. Sometimes it takes dire circumstances for individuals suffering financially to finally come to the table and consider bankruptcy because of the stigma surrounding the process. The truth is, bankruptcy has many benefits including getting out of debt, keeping your retirement funds, stopping the creditors from harassing you, and building back an improved credit score.
If your finances are not ideal and you are unsure what options are the best for your specific circumstances, Christopher L. Arrington can help. Christopher L. Arrington is an Indiana bankruptcy attorney who can work with you to determine the best strategy to manage your money and repair your credit.
Tips to Fix Your Credit Score
After your bankruptcy filing, you can avert your attention to repairing your credit score. Doing so takes some time, but when you get organized and devise a comprehensive approach for managing your money you can do it. In fact, if you can stick to your plan you may be able to see your credit score go up within a year of your bankruptcy case. Taking these important actions will contribute to rebuilding your credit after filing for bankruptcy in Indiana:
- While bankruptcy will erase a lot of your debt, it may not undo all of it so it is important to see what debt you still have remaining. Making sure that you make your payments on time for the debt that is still active will keep you in good standing. If possible, pay more than your minimum amount which will help you get rid of the debt faster. When you can target your debt and start chipping away at it, you can improve your debt-to-income ratio which will have a positive impact on your credit.
- It may be a bit more difficult to open new lines of credit after bankruptcy, but it is important that you establish fresh forms of credit. Whether you apply for a new secured credit card or you take out a small loan, it is critical that you make your payments in a timely manner. If you are able to manage new forms of credit you will show that you are responsible and reliable to lenders which will boost your credit.
- When you are choosing which type of lender or creditor to use, ask if they report to Experian, TransUnion, and Equifax so that your positive activity is documented. Because a lender does not have to report to these bureaus, making sure that you work with a company that does communicate with them is key to building a history of being accountable for paying back loans.
- Not only does paying more than the monthly amount help to pay off a loan or a credit card bill, but keeping the balance low also shows that you have the ability to pay back what you borrow.
- Review your credit report to ensure that what is detailed on it is accurate. Should there be an issue with the information, immediately contest the problem.
Speak With an Indiana Bankruptcy Attorney
Struggling to pay your bills is stressful and the longer you continue to have difficulties, the worse your situation can become. When you work with Christopher L. Arrington, a Danville bankruptcy attorney you will have customized legal counsel that will listen to you and explain what options are available to get out from under a crushing debt situation. Schedule your free consultation with Christopher L. Arrington by calling (317) 745-4494.