You’ve worked years to get your credit established and due to unforeseen circumstances, your credit rating has become less than stellar. You have exhausted your options trying to negotiate with creditors, paying minimum balances and struggled to stay afloat. Once you meet with an experienced Miami bankruptcy attorney, such as those at The Law Offices of Alberto Hernandez, P.A., one of the first questions you may ask is “When can I reestablish my credit?”
Filing for bankruptcy does not mean that you will be blacklisted forever, as many urban myths lead you to believe. In fact, most people who file Chapter 7 bankruptcy may begin to receive credit card offers and approved credit cards within the first year following a discharge. These credit cards may come in the form of store charge cards, secured credit cards (where credit is extended to the amount given as a
down payment as collateral), or credit cards with lower credit lines and high-interest rates. Over time, as you begin to establish a steady financial repayment record, lenders may begin to reduce high fees or increase credit limits. In 2-3 years after the bankruptcy discharge, some individuals are even able to qualify for a mortgage and/or a vehicle loan. By the time the bankruptcy record is wiped from your credit reports (usually after 10 years), most people have brought their credit score up to where it was originally or even exceeded it. Another thing to keep in mind is that there are legal limits to how long you must wait in order to re-file a new case. If you have already filed and have been discharged, this lets creditors know that you may be less of a risk to re-file and therefore, they may extend credit more easily to you.
The most important thing to remember while in the process of re-establishing your credit is to spend and save wisely. It is very tempting to accept all of the “Pre-Approved” offers that you begin to receive in the mail but you should always read the fine print and understand the terms and conditions associated with each card. Remember, filing for bankruptcy should relieve you of the financial burdens you once had and it should grant you a fresh new start by allowing you to rebuild your finances, one step at a time.
For more information on how to file for bankruptcy in Miami, contact Attorney Alberto H.
Hernandez, Esq. at 305-820-0334.