People faced with unpayable debt that burdens them day in and day out often need
bankruptcy to escape it. More often than not, this means using
Chapter 7 bankruptcy to discharge as much debt as possible. For all the good that bankruptcy
filings can bring, they can bring consequences, mainly damage to a filer’s
If you have filed for bankruptcy, or are thinking about doing it, and are
worried about your credit score, check out these four ways you can help
Inspect: Your credit score might be barely affected by your bankruptcy filing, or
it might be significantly impacted. As the bankruptcy plays out, it can
fluctuate, generally leading to some understandable confusion. When it
is finalized, inspect your credit report and score to look for any clerical
errors that shouldn’t be there.
Budget: It is easier said than done but budgeting is essentially if you want to
stay out of financial trouble again, especially if overspending was the
main reason you fell into bankruptcy in the first place. There are a lot
of tools out there for budgeting assistance, from an accountant to computer
software to a spiral-bound planner. Explore your options and focus on
making it work.
Secured credit card: The financial power of a credit line can be too much for some people and
they wind up deep in debt. At the same time, responsible credit use is
a fast and simple way to rebuild your credit. If you want to pursue this
method without risking too much, look into a secured credit card, which
works by you depositing money with the card issuer upfront and treating
that like a credit line requiring monthly payments.
Little loans: Paying back loans of any amount is helpful for your credit. One strategy
is securing a small loan for a few hundred dollars that you know you can
repay over the course of a few months. Think small steps in the right
direction. Be sure to review the fine print, though, so you don’t
agree to a small loan with outrageous late fees or interest rates.
You can also be preemptive about how to protect your credit score. Before
you file for bankruptcy, retain the services of a bankruptcy lawyer to
learn which option is right for you. In doing so, you may be able to stop
your credit from being impacted at all.
Contact our Jacksonville bankruptcy attorneys from Albaugh Law Firm for more information.