Boca Raton Credit Repair Lawyer
Have you checked your credit score recently? If you have, and it is lower than you would like, then you need to take action. The first step is to contact the experienced Boca Raton credit repair lawyers at Nowack & Olson.
Will Bankruptcy Destroy My Credit Rating?
We advise and assist many clients in seeking bankruptcy protection. “Bankruptcy” is often a loaded word for many people. They assume that if they file for Chapter 7 or Chapter 13, their credit score will fall even lower and they will never be able to apply for a loan–or even a job–ever again.
But the reality is not as scary as you think. Bankruptcy is about giving you a fresh start by eliminating (or at least consolidating) most of your existing debt. In a Chapter 7 bankruptcy, for instance, many people emerge with no outstanding debts. This often improves your credit score, since you are no longer legally obligated to repay a high amount of debt.
Now, this does not mean you will be able to borrow $100,000 the day after you emerge from bankruptcy. Rebuilding your credit is a long process that requires due diligence, hard work, and a commitment to altering your spending habits. But bankruptcy is often the first step in this rebuilding process–assuming you work with a Boca Raton credit repair lawyer who will make sure you do things the right way.
How Do I Rebuild My Credit After Bankruptcy?
Every person’s financial situation is unique, and at Nowack & Olson we offer legal advice tailored to your case. But here are some common post-bankruptcy steps our clients take on the road to rebuilding their credit:
- Staying on top of your bills. Bankruptcy only discharges debts owed as of the date of the filing. It will not protect you from your bills going forward. So make sure to pay your rent, utilities, and student loans on time each month. This is often the best way to quickly establish a clean payment history and raise your credit score.
- Applying for a credit card. Again, do not go out and start charging thousands of dollars the second you receive your bankruptcy discharge. But it is often useful to apply for 1 or 2 credit cards to help further establish a clean payment history. You may be surprised that creditors are eager to extend credit to bankruptcy debtors, but they are–especially since they know you are free of prior unsecured debt.
- Monitor your credit report. A bankruptcy will stay on your credit report for 7 to 10 years. There’s nothing you can do about this. But if there are inaccurate or outdated items on your credit report–including any debts discharged during the bankruptcy–you have the right to know and demand the reporting company make appropriate changes.
A Boca Raton credit repair lawyer at Nowack & Olson can advise you throughout the post-bankruptcy process of rebuilding your credit. Call us or contact us online to schedule a free, no-obligation consultation with a member of our bankruptcy team today.