Most people never imagine themselves in a financial situation that forces them to file for bankruptcy and are unsure how to move forward once the bankruptcy process is over. The important thing to remember is that bankruptcy offers a fresh start. It is up to you to use that opportunity to reset your finances and rebuild your credit. At Newland & Newland, LLP, we work with clients to understand the entire bankruptcy process including how to move forward once your debts have been discharged. Bankruptcy can be the first step on the road towards a solid financial future if you know what to do when you case is closed.
How to Rebuild Your Credit After Bankruptcy
One of the biggest worries of bankruptcy filers is how their credit will be affected. Having a bankruptcy on your credit report does have a negative impact, but if you are at the point where bankruptcy is necessary, your credit rating has already likely been lowered significantly. Bankruptcy allows you to clear off most or all of your old debt and start with a clean slate.
Following a bankruptcy discharge, whether you file for Chapter 7 or Chapter 13, it is possible to start improving your credit rating right away. Many people can obtain credit right after a bankruptcy when prior to filing a bankruptcy they were unable to obtain credit.
To learn more about the long-term impact of filing for bankruptcy and how to improve your financial situation following bankruptcy, contact us to schedule a free consultation. From our 6 Northern Illinois offices, our attorneys serve the entire Chicagoland area including Cook County, Lake County, DuPage County, McHenry County, Kane County, and Will County.