Bankruptcy on Credit Score: A Suggestive Guide
In the United States, the law of bankruptcy is very beneficial for a person who is struggling to pay back debts. With the filing of bankruptcy, the person is free from the burden under certain conditions. Generally, the total expense of a person is evaluated by the bankruptcy monitor along with the monthly income. Excluding the amount for necessary expenses, the rest is taken for repaying the loan. The bankruptcy lawyer in OKC helps out to understand and cope with the rules.
Though filing a bankruptcy may help you relieve from the loan burden of and the rate of interest, but it has some ill effects too. The bankruptcy has a report which is open to the public. The report states your bankruptcy and sustain period, even after you repay the loan. According to the Fair Credit Reporting Act of 1970, the Chapter 7 and Chapter 12 bankruptcy may stay on the report for the 10 years and 7 years respectively.
Moreover, the credit score may drop down and despite repaying the loan, you may fail to get a credit as the lenders may refuse your application seeing your past record. Though the loan amount will not be marked as unpaid, once you pay it back, but it will be there. You can consult the bankruptcy lawyer in OKC in this case.
You can improve your credit score and maintain credit cards again, but you have to be careful about the amount. Lend according to your affordability. Here are some points for improving the credit score.
- Keep an eye on your credit score after filing the bankruptcy. Make a note of your debts altogether and check the status after those are discharged. The debts will either be non-existing or will show zero balance. If you see anything stated wrong in the report, you can connect with the bankruptcy lawyer in OKC.
- Your credit report will be dependent for next seven to 10 years on chapter 7 or chapter 13 of bankruptcy. Try to reestablish the credit score during this period so that after the tenure you can begin with a good credit score. Go for the credit right after the bankruptcy repayment and pay back the loans on time, to improve the credit score.
- Once you have filed for bankruptcy, be cautious to use the credit cards again. Before you use a credit card or apply for the one, go through all the offers they are providing and pick the most suited one for you. If you need, you can discuss with a bankruptcy lawyer in OKC regarding this.
- Do not open multiple accounts at a time. It may make you puzzled and bring in trouble. It is better to keep your oldest account active for the prior record of your credits.
The filing for bankruptcy, attending everything according to the law and maintaining the credit balance in future can be hectic for you. You can connect with Chris Mudd & Associates to get help in bankruptcy and related issues.