Palmdale Rebuilding Credit Lawyers
Filing bankruptcy is a wise option for many people in debt, but it will always come with a significant hit to your credit score. However, many people struggling with debt still see the advantages of the bankruptcy process. Our team at Wadhwani & Shanfeld ensures our clients understand the impact, which is different when you compare Chapter 7 and Chapter 13. If it is the right fit, you can feel confident moving forward knowing that there are ways to boost your credit in the aftermath.
Please contact us to set up a consultation with a Palmdale rebuilding credit lawyer for details about improving your score. You can also review five steps that will help get you on your way.
- Establish a Budget: Take what you learned from the mandatory credit counseling you received during the bankruptcy process to create a budget that is in balance. Start with your income, subtract expenses, and see where you stand. If your expenditures are higher, you may need to adjust your lifestyle or increase employment opportunities. When your income is sufficient to cover monthly costs, make a savings plan.
- Apply for a Secured Credit Card: A typical credit card is not secured by collateral, but there are companies that will work with you for a secured account. You deposit an amount with the issuer, which represents your limit for the credit card. Use it like a credit card, but you will not be able to go over your limit. A secured credit card is not a debit card; instead, your deposit is an insurance policy for the issuer if you default.
- Pay All Bills on Time: Do not let any accounts fall behind after you complete bankruptcy, including your mortgage, utilities, cell phone, cable, and others. Plus, keep in mind that not all debts might have been discharged in bankruptcy. Our Southern California credit repair __ will explain what debt will remain even before you file, so there will be no surprises about additional costs.
- Consider a Credit Builder Loan: Some banks offer a special loan that is secured by your deposit of cash. You make payments to the bank for this amount and will gain access to it when the total reaches $0. A crucial reason to consider a credit builder loan is that your payments are reported favorably to credit reporting agencies. Wadhwani & Shanfeld will provide additional details on this important step.
- Report to Credit Bureaus: Whenever possible, make sure credit reporting agencies know about your on time payments. Your actions boost your credit score over time, opening up financial opportunities.
Speak to a Palmdale Rebuilding Credit Lawyer Today
These five steps are an important part of getting your financial footing back after Chapter 7 or Chapter 13. Guidance from an experienced Southern California bankruptcy lawyer is also crucial for rebuilding credit after bankruptcy, so please contact Wadhwani & Shanfeld to learn more. We can schedule a consultation to give additional details on the five steps.