This is a big worry for most of our clients. And why wouldn’t it be? Your credit can determine a lot of things: credit card or loan approval, interest rates, eligibility for housing or vehicle loans, and more! It’s only right that one would be nervous about their credit after filing a bankruptcy. So let’s go over what will happen to your credit throughout the bankruptcy process.
Before bankruptcy: Your credit may be low. It could be very low. This could be for a variety of reasons, not limited to missed or late payments or an over-abundance of debt. At this point, there probably isn’t much more one could do to hurt their credit even more. So, you decide to file for bankruptcy and to take your life back.
During bankruptcy: We always suggest never pulling your credit reports during an active bankruptcy. 1) Because it is only going to change after your discharge and 2) all of your creditors and debts are going to be up in the air for the duration. The score you may be given is certainly going to bounce up and down and left and right every day during your bankruptcy. At this time, your credit score will be volatile –but this is normal and nothing to worry about!
After bankruptcy: We advise our clients to wait as long as possible after their discharge to pull their credit report and begin applying for new lines of credit. This will give your credit score time to settle and grow and will also give the credit bureaus time to report and calculate everything accurately. Pulling your reports, at minimum 30 days, after your discharge should give you a solid idea of where your credit stands. Clients are almost always pleasantly surprised to see that bankruptcy has actually improved their credit!
Conclusion
Take back your credit and take back your life! Schedule a FREE, NO-OBLIGATION consultation today at www.kainscott.com.
