Bankruptcy doesn’t ruin or destroy your credit.

Below are a few reasons as to why your credit is restored after filing bankruptcy:

  1. Firstly, if you’ve filed for Chapter 7, you will have to wait another 8 years before you’re able to file another Chapter 7.
  2. Secondly, once your credit report is wiped clean of the delinquent accounts, your credit score will increase.
  3. Lastly, your debt-to-income ratio (DTI) will be much better.  In other words, a lender likes to see that you can pay for your basic needs, handle the potential debt you will be incurring, and still have money left over.

After your Chapter 7 is granted, you will have all or most of your debt cleared. So basically, after filing bankruptcy, you’re not as much of a risk to a creditor.

It’s not as hard as you probably think to rebuild credit after bankruptcy.

Shortly after filing bankruptcy, creditors will start to extend credit to you.  As crazy as this sounds, it’s a good idea to open a credit card. Then use the credit card and pay it back on a monthly basis.  Make sure your balance does not go over 30% of your limit and you will be well on your way to rebuilding your credit after bankruptcy.  Your getting back on the board with an account that is in good standing!

To learn more about how you can rebuild credit after filing bankruptcy, contact Attorney Jason P. Provinzano, Esquire, of JPPLAW, at (570) 822-5771 today.