After Your Bankruptcy -- Grand Rapids MI Lawyer
Re-establishing Credit and Other Post-Bankruptcy Concerns
A common concern of anyone thinking about filing bankruptcy or going through the process is what happens after the bankruptcy. Will they ever be able to take out loans? How can they re-establish credit? Can banks and other lenders hold bankruptcy against a person?
David Andersen & Associates, P.C., in Grand Rapids, Michigan, is a debt-relief agency with extensive experience in helping clients achieve financial relief through the filing of consumer bankruptcy. As Board Certified Consumer Bankruptcy Attorneys, we can address your concerns and help set a realistic expectation of what you can expect after a bankruptcy. We want you to feel comfortable about your decision to file, and be prepared for the steps you will need to take to re-establish a solid financial position.
People file bankruptcy due to circumstances that necessitate relief from debt that cannot be paid on time. Sometimes filing bankruptcy is the only way to start the process of rebuilding credit because bad debt hangs on until it is paid or discharged. A credit report “write off” does not mean the debt is cancelled, but only means that it is a bad debt and is a bad mark on credit reports. The sooner a person files bankruptcy, the sooner the person can rebuild credit.
Call 616-784-1700 to speak with one of our consumer bankruptcy lawyers about your situation.
Life After a Bankruptcy
The most important thing to remember is there is life after a bankruptcy. Although bankruptcy stays on your public creditor report for up to 10 years, many lenders will finance you shortly after filing bankruptcy. In fact, it is common for banks and mortgage companies to approve a mortgage in as little as one or two years after filing.
In addition, your day-to-day life should not be affected. Employers and benefit agencies cannot discriminate against you based on your bankruptcy status. Neighbors, families and friends do not ever need to know of your filing. You get the benefit of maintaining your life before the bankruptcy, without having to worry about the past debts.
Rebuild Your Credit
A common misconception is that filing bankruptcy ruins credit so badly that an individual will forever have a difficult time receiving personal loans or mortgages. While bankruptcy does affect credit, it is not as bad as other negative marks on the creditor report, such as foreclosure, lawsuits and repossessions, and delinquent payments. In fact, bankruptcy can actually improve your credit in the long run because it improves your debt-to-income ratio.
Once the bankruptcy filing is closed, debtors can immediately begin rebuilding their credit by continuing to pay on bills, keeping a good relationship with the bank, maintaining appropriate funds in a checking account, and other smart financial behavior. While not immediate, a credit score will improve with smart behavior over time. We suggest that you pay all bills on time, pay insurance on time, do not bounce checks, do not let insurance lapse, and keep a good steady income. Late payments after bankruptcy prolong the recovery process.
Learn more about life after your bankruptcy filing. Contact our offices today at 616-784-1700 to schedule an initial consultation. Evening and weekend appointments are available.
We are a debt-relief agency helping people file for bankruptcy relief under the Bankruptcy Code.