3 Things You Should Know about Reestablishing Credit
Bankruptcy can carry some heavy consequences for a debtor’s future credit opportunities. By filing for bankruptcy, a debtor will lose much of their standing with creditors and credit agencies. This means that buying big-ticket items like cars or houses can be especially difficult for a debtor after bankruptcy. To prepare for these problems, a debtor needs to think ahead before they file.
If your finances have been overwhelmed by debt, you may benefit from bankruptcy. To learn more about how bankruptcy can prove a new beginning for debtors, contact Florida bankruptcy lawyer Ryan J. Really, Attorney at Law, PLLC, at (239) 237-0675 today.
Credit Lines and Bankruptcy
A debtor facing bankruptcy should consider the following facts about keeping credit or getting new lines of credit after bankruptcy:
#1: Credit Scores May Suffer, but Some Options Remain
A low credit score does not mean that all credit options are off the table. There may still be some banks or creditors who are will to provide credit for people with poor credit scores. However, these credit opportunities often come at the cost of high interest rates, which can be troublesome to deal with. It is also important to note that your credit is likely to suffer substantially if you continually fail to make payments, so there may be little additional harm done.
#2: A Debtor Should Stay Realistic
When a person files for bankruptcy, they get a chance to start over again. However, they do this at the penalty of a suffering credit score and. It takes time to build up a person’s credit score again, and a debtor needs to stay realistic about what credit options will be available. A credit deal that sounds too good to be true might be just that.
#3: Credit Cards Can Be Kept
If a debtor can draw up an agreement with a creditor, they may affirm a credit card. This means keeping that credit open through the bankruptcy. The debtor will still need to pay off that card in particular, but the line of credit may stay open for the debtor to use in emergency situations after a bankruptcy.
If you are thinking about bankruptcy, we may be able to help you. For more information regarding your legal options as a debtor, contact Florida bankruptcy attorney Ryan J. Really, Attorney at Law, PLLC, by calling (239) 237-0675 today.