Bankruptcy offers an incredible range of benefits to borrowers struggling with debts they can't pay, and it can often be the only way to reclaim your life. However, many people hesitate, often over worries about the impact that filing for bankruptcy would have on their credit score. However, as The Gil Law Firm's attorneys in Dothan, AL, explain, filing for bankruptcy doesn't have to be the end of your financial life. In fact, it can be a new beginning.
After a bankruptcy, they recommend the following steps to start rebuilding your credit:
- Check Your Credit Report: First, you'll want to make sure that all of the debts that were discharged in the bankruptcy are appropriately marked and that no closed accounts are still listed as open. Over the long term, these kinds of mistakes can be even more damaging to your credit than the bankruptcy.
- Open A Store Card: Limited-use credit, like gas station or store credit cards, can be easy to get, making them a great way to start demonstrating your creditworthiness. Whatever you do, make sure you pay off your balance every month.
- Get A Credit Card: It may seem counter-intuitive, but you can often qualify for a credit card even if you've just filed for bankruptcy. Many lenders will approve you for a low-limit, secured card which requires that you place a certain amount of money in a bank account. Over time, you'll be able to get a regular, unsecured card with reasonable interest rates.
Since 2000, The Gil Law Firm has been helping people throughout the region navigate the complexities of the bankruptcy process, ensuring that they get the most out of filing. Visit their website to learn more about their broad range of legal services, from debt consolidation to disability assistance, or just call (334) 673-0100 to schedule a consultation today.