My credit after Bankruptcy

A big concern for people filing for bankruptcy in Florida is: I will ruin my credit. I will not have any credit for the next 10 years.

This could not be farther from the truth. If you haven’t notice your credit is not worth much right now if in fact you are contemplating filing for bankruptcy. Hopefully your credit is not as bad as mine, but chances are is pretty bad too. To tell you the truth I don’t think there is much more damage that you can do to your credit. Sorry got a little carried away there. But people generally has the misconception that filing for bankruptcy is the end of their credit worthiness, when is completely the opposite.

You might not realize this, but a person is at better risk to a credit card company after bankruptcy because he does not have any debt anymore! I read somewhere that credit card companies even send credit card offers immediately after the bankruptcy discharge.

You can have very good credit in a reasonable amount of time. My brother in law had a 650 Fico score 2 years after he filed for bankruptcy, which is pretty impressive.

Studies show that you can purchase a house  18-24 months after your bankruptcy. In my case I worked with a credit repair agency right after my bankruptcy and my credit score was pretty impressive just after a year. I would definitely consider at least consulting a credit repair agency if you know a good one.

The key to start with a right foot after bankruptcy is pretty much not doing anything that you have done in the past that led you to your financial ruin. Treat your credit like gold and be financially responsible with your credit. If you are able to keep one credit card to start rebuilding your credit, do so. (If you do not have any balance will be easier to keep a credit card, however many credit card companies will allow you to keep their credit card after the bankruptcy if you agree to reaffirm the balance and enter into a new agreement with them.)

Bankruptcy is no more harmful than the financial circumstance that led you to consider bankruptcy, although bankruptcy will show on your credit report for the next 7 to 10 years, lenders will be able to see that your bankruptcy was discharge and your debts was erased, making you a better prospect as a customer.

Avoiding Bankruptcy

Although most of the information that this site contains is geared towards the benefits of filing for bankruptcy, every case is different and you should definitely consult an expert. I am not a lawyer and I am not representing one. The information you obtain at this site is not, nor intended to be used as legal advice. With that said there is many other options for you to avoid bankruptcy, If you can avoid bankruptcy that is always the best scenario.  Some of the options are:

Debt Consolidation Loan:

There are several agencies out there that provides debt consolidation loans. They will study your financial situation and then contact your creditors to try to lower your interest rate or your principal and then consolidate all your debt into one payment that you can afford. Sometimes they will use the equity in your home if you have one to pay your debt.

Settlement out of court.

There are companies that will help you negotiate with your creditors to settle your unsecured debt at a reduced amount. Most creditors are willing to work with you, especially if you have been paying late and the possibility of bankruptcy is in the horizon.