Schedule a consultation
Our experienced attorneys provide an array of legal services across several practices.
We’ve helped thousands of people find solutions to problems. We’d love to help you too.
If you’ve filed for bankruptcy in Tempe, you should know how Tempe residents can reestablish credit after bankruptcy.
Life after bankruptcy in Arizona doesn’t have to be hard. With the best bankruptcy attorney in Tempe by your side, you can start to rebuild your life and your credit post-bankruptcy without any additional challenges.
Read on below to find the answers to the following questions:
Now that you’ve officially filed for bankruptcy with a Tempe bankruptcy lawyer by your side, you’re probably feeling relieved. You can finally breathe again. No more calls from collection agencies or credit card companies. You’re finally free!
And now you’re ready to take the next step: rebuilding your credit.
Your debts have been discharged and you can now start fresh. However, keep an eye out for these things:
If you’re wanting more specific advice on what to expect and how Tempe residents can reestablish credit after bankruptcy, contact the best bankruptcy attorney in Tempe: Davis Miles McGuire, Gardner. Our dedicated team of Tempe bankruptcy attorneys is ready to assist you through every step of bankruptcy.
It’s essential to understand that your credit score is affected when you file for bankruptcy.
After filing, a bankruptcy can stay on your credit report for up to 10 years.
Thankfully, the weight of these penalties decreases as time goes on.
You can expect your credit score to drop after bankruptcy. While your debts are now discharged, the accounts will still show up on your credit report. However, they will be reported as “discharged” or “included in bankruptcy” with a $0 charge. Lenders will see this when looking at your report.
So what’s the impact to your credit score?
Note that having a higher score before bankruptcy means you’re likely to experience a larger impact. If you already have a lower score, there’s not much further for you to fall, meaning you may feel less impact.
No matter your credit score at the start, after filing for bankruptcy you will have a bad credit score. FICO scores cannot go any lower than 300, but it’s pretty rare for them to dip anywhere below 500.
An Arizona bankruptcy lawyer in Tempe can help you better understand how bankruptcy may impact your credit.
Rebuilding your credit after bankruptcy is not impossible – there is hope! Believe it or not, bankruptcy is not a death sentence for your credit score or your future.
Even if your bankruptcy dropped your credit score to 550 or lower, you can recover in as little as 12-18 months!
After filing for bankruptcy and getting your debts discharged, things change. As we discussed above, getting new lines of credit or applying for loans will become more challenging. However, as time goes on, this will become less and less difficult to achieve.
Note that there are restrictions and minimum waiting periods to reestablish credit in place for things like home loans.
For example, Fannie Mae requires the following after a bankruptcy:
However, it is possible to secure financing for a car or home even a day after you file for bankruptcy. A Tempe bankruptcy lawyer can help you understand what’s possible with your specific bankruptcy case and help you get financing.
Now you’re ready to start reestablishing your credit. Here are some things to keep in mind:
A secured card requires a cash collateral deposit that becomes the credit line for that account. For example, if you put $500 in the account, you can charge up to $500.
At Davis Miles McGuire Gardner, PLLC, we are committed to providing our clients with the ultimate in professionalism, customer service, and client care. Whether you’re just starting the bankruptcy process, needing help reestablishing your credit, or are somewhere in the middle, our dedicated team of Tempe bankruptcy attorneys can help you. Call us today at (844) 366-4529.
How Tempe Residents Can Reestablish Credit After Bankruptcy | Davis Miles McGuire Gardner, PLLC – Tempe, AZ
Our experienced attorneys provide an array of legal services across several practices.
We’ve helped thousands of people find solutions to problems. We’d love to help you too.