What Happens After Bankruptcy
Chicago Bankruptcy Lawyers At Loop Bankruptcy Can Help
Filing bankruptcy can be an overwhelming and confusing process with lasting consequences. For instance, filing for bankruptcy will impact your credit score and it may also come into play when you attempt to obtain future loans, rent housing, and apply for a job. There are ways, however, to minimize the adverse effect of these consequences. The skilled Chicago bankruptcy attorneys at Loop Bankruptcycan help ensure that any potential adverse consequences are minimized so that you can move in the right direction financially.
The most significant impact of filing for bankruptcy will be the reduction of one’s credit score. Evidence of a bankruptcy filing will remain on an individual’s credit report for 7-10 years, but there are ways in which you can improve your credit score following bankruptcy. For instance, the creditors of debts that have been reaffirmed in the bankruptcy, such as a car loan, will continue to report timely payments that you make after the bankruptcy discharge, which will positively impact your credit score.
In addition, many banks offer “secured” credit cards, which are essentially pre-paid credit cards that operate like a debit card by allowing the user to charge up to a predetermined amount of available funds. Although these cards frequently charge a nominal annual fee for their use, they are often a better alternative to a traditional debit card because the bank will report the account to the credit reporting agencies, which ultimately improves one’s credit score, and when the card is used for travel, the bank will not place a freeze on the account to ensure that money is available.
Take proactive steps to improving your credit score after filing bankruptcy. Let our experienced Chicago bankruptcy lawyers help you.
Contact us now for a Free Consultation. (866)525-3529
Chicago, Cook County, Lake County
Although evidence of a bankruptcy filing remains on one’s credit report for 7-10 years, your credit score will continue to improve over time if you make timely payments on your debts going forward. The ability to obtain credit and financing in the future may be difficult but it will not be impossible. You may even be able to purchase a vehicle shortly after a bankruptcy filing, although typically with a higher interest rate. Obtaining a mortgage will take additional time and effort to secure after a bankruptcy but it is possible, especially if the necessary steps are taken to improve one’s credit score by making timely payments on other debts or through the constructive use a secured credit card.
It is important to remember that after bankruptcy, you will receive offers for credit cards or automobile financing that are directed at bankruptcy filers. Be cautious of these solicitations as the interest rate is likely to be astronomical. By consulting an experienced Chicago bankruptcy attorney at Loop Bankruptcy, we can help you determine which credit and financing options are helpful and those that may be harmful to your credit score.
Let us help you come out of bankruptcy on the right track.
Call us now for a free consultation to learn the ways that we can help you through the entire bankruptcy process. (866)525-3529
Many people file for bankruptcy as a means to eliminate mortgage obligations that they can no longer afford. As a result, bankruptcy filers often may need to rent an apartment in the future. Frequently, a landlord or property manager will run a credit report, and while a poor credit score alone will usually not prevent a prospective renter from being considered an acceptable tenant with proof of employment income, the landlord or property manager may request an increased security deposit.
Bankruptcy law prohibits employers from using a bankruptcy filing to terminate your employment, however, prospective employers may run a credit report and are permitted to deny you an offer of employment based on a bankruptcy filing. Recently, the Illinois legislature passed a law prohibiting prospective employers from using credit history as a criterion to deny someone an offer of employment, except if the position is at a bank, insurance company, and some government agencies. Credit history can also be used a criterion when hiring people for management positions.
Consult an experienced bankruptcy attorney to determine your options. Act Now. (866)525-3529 Chicago, Cook County, Lake County ∙ Contact us Bankruptcy is a complex legal process for resolving debts that has lasting consequences.
At Loop Bankruptcy, a service of Lakelaw, our Chicago bankruptcy attorneys will not only help you navigate the bankruptcy process, but they will also help you come out of bankruptcy heading in the right direction so that you can use your bankruptcy filing to positive impact your long-term financial condition.
Contact us now for a Free Consultation and let us help you use emerge from bankruptcy in the most constructive way possible. (866)525-3529 Chicago, Cook County, Lake County
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