After Bankruptcy in Florida, Will You Ever Get Credit Again? Yes.
The credit card and banking industry has gone to great lengths to continue the myth that filing bankruptcy will impact your credit forever. Everyone has heard the myth that you will never be able to buy a new car again. Or you will have to rent an apartment because you will never get a mortgage. While it is true that bankruptcy will affect your credit for up to ten years, it doesn't mean that you will never be able to borrow money necessary to meet your daily living needs.
How Will Bankruptcy Impact My Credit?
After your debt has been discharged through a Chapter 7 filing, or you begin repaying your debt through a court-supervised repayment plan under Chapter 13, your credit score will probably dip into the middle 500s for about a year. Of course, chances are your credit score before you filed wasn't anything to brag about anyway, as you juggled bills from month-to-month to make ends meet.
During the first year after bankruptcy, there are strategies you can follow to improve your credit score. You will learn more about some of these tactics during your mandatory credit counseling course required of all bankruptcy petitioners. One strategy is as simple as opening a savings account for a minimum account balance — even $25 — at a local credit union. Then add just $5 each pay period for a year. At the end of the year, take out a small loan, using your account balance as collateral. Pay it back in timely payments and you will already begin rebuilding your credit. You can also take out a secured credit card, often for as little as $300 you pay into your account. Use the card sparingly. Pay back your monthly payment into your own account and build your credit rating every month.
If you keep your house and car payment through bankruptcy
If you decide to continue making your mortgage and car payment when you file for debt discharge, you have an opportunity to rebuild your credit. Make your mortgage or car payments on time — every month. Your credit score will rise quickly and you will feel very little impact on your ability to borrow money. Talk to a lawyer at The Golden Law Group to learn more.
Within 18 months, many people who have filed for bankruptcy often find themselves receiving offers of credit cards and sub-prime mortgages and auto loans. Make no mistake, you will pay higher interest rates. But by carefully selecting your opportunities to rebuild your credit, you will find your credit score pushing above what it may have been before you filed.
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Contact an experienced Florida bankruptcy attorney at The Golden Law Group to schedule a free initial consultation. Offices are conveniently located in Brandon, Tampa and Bradenton, Florida. The firm represents clients in communities throughout Manatee County, Hillsborough County and Saratoga County, Florida.
