Some of the largest concerns consumers tend to voice when first beginning to explore their bankruptcy and debt relief options concern the effects that these legal actions have on credit. It must be stressed that while bankruptcy, under either Chapter 7 or Chapter 13, it can certainly impact credit, however the effects are not ruinous and are in no way permanent.
U.S. bankruptcy law was designed and created to provide those in need with much needed debt relief, for new avenues of opportunity and a fresh financial start. The bankruptcy process is a means to punish debtors. As such, life after bankruptcy should be viewed in a positive light, and consumers should feel confident knowing that they can effectively restore and rebuild their credit.
The fact of the matter is that anyone who may be considering bankruptcy as a viable form of debt relief has most likely already experienced some form of financial turbulence. For many, negative effects on their credit were apparent far before they filed bankruptcy. Regardless, bankruptcy filings can have an impact on credit. Fortunately, however, responsible financial behavior and informed credit restoration habits can help individuals, families and businesses reestablish a credit score much stronger than they had before bankruptcy. Rebuilding credit is not an overnight process, but it can be a fulfilling and rewarding one.
Aside from stressing economic foresight, our Chicago bankruptcy lawyer finds that many of our clients have benefited by applying for low-limit or prepaid credit cards during the periods immediately following their bankruptcy. These can be followed by additional lines of credit, responsible credit practices, loans and other methods of rebuilding your credit. It is also widely recommended that consumers obtain free credit reports regularly to monitor their credit health.
While our firm's bankruptcy attorneys do everything in our power to guide you through the complexities of the bankruptcy process, we also value the importance of educating you and providing you with the skills and strategies you can use to establish and maintain a debt free future. This means should you choose to work with Joseph P. Doyle, you can be confident knowing we work closely with you throughout every step and with whatever it is you may need.