How to Rebuild Your Credit After Filing for a Chapter 7 Bankruptcy in Florida
Among the most common questions a bankruptcy attorney is asked is, how do you rebuild your credit after filing for a Chapter 7? It’s true that a Chapter 7 bankruptcy will negatively impact your credit score. It’s also true that your credit score is probably not in a good place if you are considering filing for bankruptcy. In this article, the Jacksonville, FL bankruptcy attorneys at The Law Offices of Carol M. Galloway will discuss how to rebuild your credit after filing for bankruptcy.
Rebuilding your credit after filing for bankruptcy in Jacksonville, FL
Your ability to maintain a good credit score is not merely dependent on your credit accounts. It also involves your assets and financial stability. Your credit score can reflect how long you’ve had the same job, how long you’ve lived in the same place, and whether or not you have an active savings account. Your current credit accounts can also help you reestablish good credit.
Credit inquiries reduce your credit score. For this reason, it may not be a good idea to apply for a new credit card right away after declaring bankruptcy. This can actually make it more difficult to establish credit later.
- Avoid late payments to non-bankruptcy credit accounts – After filing for bankruptcy, some of your unsecured accounts will remain open. You can repair your credit by continuing to make payments on your open accounts in a timely fashion. These accounts could include alimony payments or student loans. Making consistent monthly payments is one way to repair your credit after bankruptcy.
- Staying in your current job – While quitting a job and then getting a new one will not necessarily impact your credit score directly, it can influence creditors. Creditors do check your job history when you apply for credit. Those who have a stable job are more likely to get offers.
- Applying for new credit – It is generally more challenging to apply for new credit cards after you have declared personal bankruptcy. Eventually, however, you will want to apply for a credit card. This will show creditors that you are diligent and responsible. Making on-time payments to your open accounts can help you get offers.
- Have a consignor – If you can get someone to cosign on a loan, you can help reestablish your credit. By making on-time payments to the cosigned loan, you show creditors that you are diligent and responsible when it comes to your finances. You may be able to reestablish your credit with a cosigned loan.
- Maintain a low balance – Your credit score increases with the amount of credit you are offered. If you have a high balance, your credit score will dip down. With a low balance, your credit score will go up.
For more ideas on how to rebuild your credit after a Chapter 7 bankruptcy, consult with a Jacksonville, FL bankruptcy attorney today.
Talk to a Jacksonville, FL Bankruptcy Attorney Today
The Law Offices of Carol M. Galloway represents the interests of those filing for bankruptcy in Jacksonville, FL. Call our office today to schedule an appointment, and we can help rebuild your credit right away.