What Happens To Your Credit Score After Filing Bankruptcy
Let Our Las Vegas Bankruptcy Attorney Explain What Happens to Your Credit Score After Filing.
Get your credit score back to 720 after filing bankruptcy. Las Vegas Bankruptcy Lawyer Shows You How.
Misconceptions about Bankruptcy and Your Credit Score
Most people believe that after filing for bankruptcy their credit score will drop drastically. This, however, is not entirely true. People filing for bankruptcy are usually already in financial hard times. In these cases, where debtor’s already have a low credit score, the bankruptcy filer will see a significant increase within the first 12 months after filing for bankruptcy protection in Nevada. They may even see a slight improvement in their score shortly after their case is filed.
How Bankruptcy Can Work to Fix Your Credit
The increase in a credit score after filing for chapter 7 or chapter 13 bankruptcy is largely due to the debt to income ratio being fixed upon the discharge of the unsecured debt. In other cases when a debtor filed with a higher credit score, they may see a slight drop initially. This drop doesn’t have to be permanent, if the filer takes the right steps to fix their credit score after their bankruptcy. At the Law Offices of Erik Severino, our dedicated Nevada bankruptcy lawyer pulls a bankruptcy specific credit report for our clients which will show them what to expect after filing. This projection is neither a limit nor a guarantee, because you will have some control over repairing your credit. Contact our Nevada bankruptcy lawyer for assistance with your credit score. Know the effects of bankruptcy on your credit before you file. There is life after bankruptcy.
Rebuilding your credit after a Bankruptcy
One of the best ways to fix your credit score after filing is to open a new card. A secured credit card. Having a variety of accounts is helpful as well. Try to open a gas or retail store card. The key is to not charge over 30% of the available limit. Additionally, always leave a small balance on the account. Keeping the card active is best. Thus, continue making monthly charges and subsequent payments. A few good credit cards to look into after filing bankruptcy include: Best Bankruptcy Credit Cards of 2020 or Check out these recommended cards to own after bankruptcy.
Something to Keep in Mind About Financing a Vehicle After Bankruptcy
A secured loan such as a car loan or a mortgage will also help if the payments are kept current. However, if you choose to assume the payments on a financed vehicle in your bankruptcy, the lender won’t be required to continue positive reporting. They can, and are likely to, negative report if you miss any payments. Therefore, choosing not to surrender a financed vehicle in a bankruptcy can at best have no impact on your credit, and any impact it will have will be negative. Unless you are close to paying off a car that is in good condition, you should consider financing a new (or used) vehicle after your petition is filed. If you are unable to qualify for a card on your own, being on a co-signed account can also help if you have someone willing to co-sign for you. You will also want to avoid closing any accounts. Longevity and consistency is the key to rebuilding your credit score.
Zero Down Bankruptcy Comes with an Added Bonus
If you choose to utilize a Zero Down payment plan option, the payments you make towards your bankruptcy after filing will boost your credit score just like making payments on a vehicle or credit card. Some of our clients choose to utilize this program just for the benefit of credit reporting, even if they have the means to pay for the bankruptcy up front.
Monitor Your Credit Score after Your Bankruptcy
Credit bureaus are also known to be incorrect. After the discharge of a bankruptcy it is a good idea to pull a current report and to dispute any discrepancies or accounts that did not reflect the discharge. Submitting disputes through independent agencies is best. Credit reports can be pulled for free through multiple website such as www.annualcreditreport.com
The Law Office of Erik Severino
Vegas Bankruptcy Lawyers
7251 W Lake Mead Blvd
Las Vegas, NV 89128
Phone : (702) 879-9262