People are often concerned about the ultimate effect of bankruptcy on their credit scores. Although it’s true that bankruptcy does affect your credit, it can also provide you with the opportunity to repair and rebuild your credit score.
By the time bankruptcy becomes an option, your credit score may already be compromised by late or missed payments, repossession, or other serious financial hiccups. Bankruptcy, in effect, wipes the slate clean. You’ll no longer have huge amounts of debt on your record, and you’ll be able to start over again.
Rebuilding Your Credit in Albuquerque
Bankruptcy remains on your credit report for as long as ten years, but if you begin to use credit carefully and cautiously after filing bankruptcy, your credit score may begin to rebound in as little as two years.
- Disclose your debts fully and accurately to your bankruptcy attorney in Albuquerque to ensure they are all discharged.
- Check your credit report for accuracy.
- Apply for a line of secured credit, and begin to slowly rebuild your credit.
- Move on to an unsecured credit card once you have established a record of regular payments through your secured line of credit.
Improving Your Credit Score
Although it’s always important to use credit wisely, it’s absolutely vital to do so when you are trying to repair your credit scores. You can be confident of staying on the right track by:
- Making only those charges you can quickly pay off in order to demonstrate responsible use of credit.
- Making your payments in full and on time.
- Reading all credit offers thoroughly before accepting them.
Not all debt solutions are created equally. When you are facing seemingly insurmountable debt, the Albuquerque bankruptcy lawyers at Melwani Law can help you weigh your options and determine which may be best for your situation.
Bankruptcy provides you with a solution in which you will be able to repay or eliminate your debt. Once your debt is discharged, you will be in a position to more quickly repair your credit score.