Declaring bankruptcy is a massive blow to your financial standing, and
will have a serious negative impact on your credit. However, doing so
should be a blessing in disguise as you have the ability to rebuild your
financial standing and regain your health once again. When you declare
bankruptcy, your credit score may suffer, but you can begin to see steady
improvement within just a few short months by following these valuable tips.
Need help with Bankruptcy or Credit Repair in NYC? Call our Lawyers!
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Read Your Credit Report
The first step to finding your way out of debt and back to financial health
is to know where you stand and make a plan on how to reach your goals.
The best way to do this is to review your credit report, which you can
get for free online from several places. This can help you identify any
errors and get them corrected, allowing you to obtain the best possible
Get a New Credit Card
Many people close their credit cards during bankruptcy or after having
their debt settled to wipe away the financial obligation entirely. While
this can help you resolve your debts, it’s actually not good to
go without a credit card open. You want to be working to rebuild your
score, and you can only do so by making positive actions on your credit
report. Consider applying for a low-limit card, such as a secured card
that requires a deposit. Start building a new, positive history and your
rating will climb.
Make Your Payments… On Time
According to Credit.com, your payment history is roughly one-third of your
credit score. This means even a single late payment can be disastrous
while you’re trying to rebuild your credit rating. Make sure you
are always on time with the payments for your loans and that new credit
card you just obtained in the years immediately following a bankruptcy.
Doing so will help your score rise steadily. Failing to do so will cause
your score to plummet.
Beware Credit Repair Services
Credit repair services often obtain the information of people who have
just declared bankruptcy and begin marketing to them with promises that
they can help you restore your credit score. In many cases, these promises
don’t hold a lot of weight, or they charge you a fee to handle things
you mostly could do on your own. Investigate any options you consider,
and remember, you can restore your credit on your own with just a little
bit of additional discipline.
Leave Accounts Open
As stated previously, closing all your credit accounts and swearing off
credit cards is not advisable. When you don’t have any positive
actions on your credit cards, your score stays stagnant. Closing accounts
also reduces the amount of credit available to you, which also lowers
your credit score. It’s best to keep credit lines
open and pay down your balances as you acquire them. If the temptation to spend
is too strong, cut up the card. Know your limits and don’t push
them; use your credit cards sparingly.
At the Law Office of
Simon Goldenberg, PLLC, our number one goal is to help you seek the debt relief you desperately
need. We have substantial experience helping clients with their financial
woes, and can guide you through the bankruptcy process with confidence
and professionalism. We take pride in helping clients develop a long-term
plan for financial independence, and we listen to you throughout the process
to help you create and follow the best possible plan to achieve your goals.
Whether you live in Brooklyn, Queens, Long Island, or any other part of
New York City, our offices are easily accessable by train and car.
bankruptcy lawyers are ready to help you discharge your debts and get a fresh financial start.
Call the Law Office of Simon Goldenberg, PLLC today at 347.389.0245 and
free initial evaluation to find out if bankruptcy is the right choice for you!