If you decide to declare bankruptcy, this will affect not only your finances, but your credit score as well. Let’s have a close look on what the score is.
In case you apply for the credit, the agency will most likely consider your FICO score in order to understand whether you’re worth the credit. Your score shall be over 700 to get the credit.
Sometimes it’s not so easy to recover after the bankruptcy, since the rating gets significantly lower. Still whether you filed for Chapter 7 or 13, your financial life doesn’t finish. The Chapter 13 means you were ready to pay off the credit and you paid some part of it. After 3-5 years your financial situation will get better. In case of the Chapter 7 you did hide from most of your debts. Which means the mark will stay in your record for 10 years.
The life after bankruptcy is bearable and even nice, still only for those who didn’t waste the given chance. Here are the steps you shall do.
Review your credit report
This actually means rebuilding a good credit. First of all get the copy of your credit report.
Pay bills on time
Do not let yourself be late with payments since it makes you up to 35% of your credit history.
Be careful when applying for credit
If you still decide to opt for it, pay monthly without any delays. You can get the card in 6 months after you discharge.
Make a loan
This is important since you shall show you’re able to pay regularly. Buy the car you can afford or apply for the credit line.
Credit repair service
Be aware that the company promising this service if the reliable one. Otherwise decline their help.
Know your limits
Keep your lifestyle in limits of your income. Stay well below the limits of your credit card.
Keep your accounts
Do not close them since this will drop your credit score significantly. Keep the lines open and cut up the cards if needed.
What is the future of your finances?
The consequences of bankruptcy will be with you for the next 2-3 years. Moreover the people filing Chapter 13 have a great part of their income taken away for payments. Sometimes over 30 months will be needed for getting out of trouble, however after it you may feel yourself relatively free since your debt is paid off and you’re debtor no more.
Be aware that you will most likely be exhausted somewhere in the middle of the process. You will feel like dropping it all and leaving things as they are. Remember not to give up even at this time, since if you’re strong enough to live through it you will savor the victory of debt relief.