What to Expect Once You’ve Filed for Bankruptcy | Westgate Law

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What to Expect Once You’ve Filed for Bankruptcy

Right after you file for bankruptcy, your credit will not be strong. Although it’s interesting to consider that any individual filing for bankruptcy wasn’t enjoying a “strong” credit rating immediately prior to filing either. The very same circumstances that led them to file for bankruptcy have already wreaked havoc on their credit, almost without exception.

What should filers expect after they’ve filed besides a hit on their credit report?

Filers will immediately notice the flood of low balance credit card offers they receive specifically offering to rebuild credit. Carefully consider any offers as many will come with activation fees, membership fees, and ridiculous fees that will apply once you reach the low balance threshold. Not considering offers carefully could leave you right back in the same boat you started in before bankruptcy: in debt with late payments and over limit fees stacking up on your card. Make sure that your new credit accounts are chosen with care. Work only with reputable lenders who are actually offering you an opportunity to rebuild your credit after your bankruptcy. Use your best judgment in determining who is who amongst creditors offering aid.

After filing for bankruptcy, you’ll find that you won’t be able to qualify for a traditional mortgage or car loan. Be patient and remember that individuals who file bankruptcy and then consistently pay their bills on time may see these loans in reach again within 2-3 years after receiving their discharge.

Filers can also expect to see a higher interest rate on their first few loans/credit accounts. Rates depend upon the three digit score generated by the credit reporting agencies. Scores are low post-bankruptcy. Remember that bankruptcy clears your debts, not your credit report. Any negative activity on your credit report prior to filing will still be in evidence after filing. In addition, your bankruptcy is added to your credit report. Negative items have less and less impact on your credit score as they age; especially if more recent additions to your credit report are positive. In this case, it is not surprising to see a credit score rise quickly.

Consider calling one of the bankruptcy experts at Westgate Law today in order to get more information about what you can expect once you’ve had your debts discharged.

About the Author

Justin Harelik

Justin has a singular goal: to get people out of financial distress and move them to financial stability and prosperity. He does this by combining 15 years of in-depth experience in bankruptcy, credit management, debt negotiation and student loan modifications, and he does it with both English and Spanish-speaking clients.

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