While filing for bankruptcy has enormous advantages for people struggling with unmanageable debts, it will affect your credit rating. However, as the bankruptcy attorneys at The Gil Law Firm in Dothan explain, you can take steps to start rebuilding your credit right away.
After your bankruptcy, the lawyers recommend:
- Checking Your Credit Report: Mistakes on credit reports are surprisingly common, so make sure that all of the bankruptcy discharges are accurately noted.
- Applying For Store Credit: If you've just escaped from a sea of debts, acquiring new obligations may seem like the last thing you'll want to do, but it's the best way to demonstrate to lenders that you can be financially responsible. Store credit cards with low limits and gas cards are good first steps.
- Getting A Credit Card: At first, you may only qualify for a secured card, requiring you to put down a deposit. Lenders may actually be more likely to approve your application after a bankruptcy, because they know you've just discharged a large portion of your monthly expenses.
- Paying Off Balances: Whenever possible, pay off the balance on your cards every month. Not carrying the balance will help you avoid getting back into the same situation you were in before the bankruptcy. It also shows creditors that you have fiscal discipline, which will help when you do eventually apply for a mortgage or auto loan some day.
For 17 years, The Gil Law Firm has been helping clients throughout Alabama, Georgia, and Florida find the debt relief options they need. They pride themselves on carefully evaluating your options before recommending a course of action that's perfectly suited to your case. Visit The Gil Law Firm online to learn more about bankruptcy, or just call (334) 673-0100 to schedule a consultation with a lawyer today.