Preparing You for Life After Bankruptcy
Get Answers from Our Chicago Bankruptcy Lawyers
Contrary to popular belief, there is life after bankruptcy. One common
bankruptcy myth is that you won't be able to get credit after filing, but that is
not the case. For many people, bankruptcy is a necessary step in achieving
debt relief and a restored credit rating. If you have questions about
how bankruptcy will affect your financial future, Sulaiman Law Group,
LTD. is here to help. Contact us today to discuss your case with a bankruptcy
attorney in Chicago.
Will Bankruptcy Affect My Credit Score?
While it is true that
bankruptcy could have a negative impact on your credit score, it is important to
realize that debt problems could have been dragging down your credit score
for years. For many, filing for bankruptcy is the first step in restoring
good credit. In fact, many people who file for bankruptcy start receiving
credit card offers in as little as two weeks after their meeting with
the bankruptcy trustee. Creditors know you are about to receive a fresh start.
How to Rebuild Your Credit Score After Bankruptcy
Once your bankruptcy is complete, there are steps you can take to start
rebuilding your credit. You may start receiving credit cards offers a
short time after filing. This is because you can't file again for
eight years after your first bankruptcy is complete. Therefore, the money
is quite secure. Of course, it is important to be cautious about taking
on any credit, but obtaining a secured credit card and using it only for
necessary items can help rebuild your credit over time.
After filing for bankruptcy, you can rebuild your credit over time by:
- Using a prepaid or secured credit card to build up your credit
- Paying all of your bills on time and, when possible, in full
- Buying only what you can afford to pay at the end of the month
- Checking your credit report to see exactly where you stand
Disputing any errors or
mistakes on your credit report
Some people who have filed for bankruptcy are also able to qualify for
a home loan in as little as 18 months. While your interest rates may be
higher with a bankruptcy on your credit report, saving up for a sizable
down payment can help mitigate this expense. When you work with Sulaiman
Law Group, LTD., our Chicago bankruptcy attorneys can help you understand
how bankruptcy will affect your credit and explore strategies for enjoying
a healthy financial future.
Obtaining a Mortgage After a Bankruptcy
High on the list of reasons that people are hesitant to file for bankruptcy
is the belief that they won't be able to obtain financing for property
again. However, as the Fair Housing Administration (FHA) points out, an
individual who files for bankruptcy may be eligible for federal loans
in short period of time. Provided they maintain perfect credit from the
date of discharge, a person filing under
Chapter 7 is eligible for an FHA loan two years after the date of discharge.
If the borrower can show that the bankruptcy was caused by extenuating
circumstances beyond their control, and that they have exhibited an ability
to handle their finances in a responsible manner, the eligibility period
begins one year after discharge. Those who file under
Chapter 13 are eligible as well. After one year of successful trustee payments, a
person may qualify for an FHA loan. If the borrower is still making plan
payments, court permission is required.
Contact Sulaiman Law Group, LTD. for the Help You Need
Do you have questions or concerns about life after bankruptcy? If so, we
encourage you to seek answers from our team of bankruptcy lawyers in Chicago,
IL. Sulaiman Law Group, LTD. can not only answer your questions about
what to expect after Chapter 7 or Chapter 13, but we can guide you through
the entire bankruptcy process step by step.
Ready to get started? Contact our office today at (312) 313-1613 to
schedule your initial consultation.