When you are facing a growing pile of debt with no end in sight and have come to the conclusion that bankruptcy is right for you, one of the thoughts that you need to keep in the back of your mind is your credit. Chances are that your credit has already been negatively affected by your debts and possible late payments. Most Clearwater bankruptcy lawyers will tell you the same thing: filing bankruptcy in Florida is not going to help your credit score, but it might make you a more desirable risk to some lenders.
Filing Bankruptcy Means Restarting With A Clean Slate
When you file for bankruptcy, you are able to get a clean financial slate. It is this time that you need to focus on rebuilding your credit score and credit worthiness to lenders. As mentioned above, there are lenders that seek to loan money and offer credit cards to recently declared bankrupt individuals. The reasons vary, but more or less it comes down to that a person cannot file back to back bankruptcies.
There are several actions that you can take to start the rebuilding process. All three credit reporting agencies must allow you to submit and include a 100 word statement to the bottom of your credit report. Depending on your particular financial situation that forced you into bankruptcy, submitting this statement could be advisable. It will offer you the opportunity to explain why certain things appear on your credit report.
Depending on my client and the debt that they are facing, I might advice them to maintain one of their credit cards post bankruptcy. It is important that you speak with your Clearwater bankruptcy attorney about your credit and if you should keep one of your credit cards through the bankruptcy process.
There are numerous secured credit card companies that will solicit your business post-bankruptcy as well. Use caution when selecting one of these companies. Many charge a ridiculous annual or monthly fee, and some do not report your payments to the credit agencies. In order to rebuild your credit, you need to have creditors reporting that you are making your payments on time each month.