Chapter 13 bankruptcy allows debtors to reorganize their debt in such a way that they are able to repay their creditors within three to five years. As a result, people are able to save their homes from foreclosure, keep their vehicles and retain their property during the bankruptcy process. At the Law Office of Douglas J. Powell, P.C., we understand that going through a bankruptcy can be challenging. We also know that once a bankruptcy is discharged and the debts are absolved, people can regain their financial freedom.
Bankruptcy can have a negative effect on a person’s credit report and score. This can make it difficult for people to be approved for loans, purchase a home or obtain other types of financial aid. After the bankruptcy process is over and people are essentially debt free, they may want to start thinking of ways in which they can rebuild their credit. Although it will take time for the bankruptcy to fall off of the credit report, there are some things people can do to strengthen their credit score.
Credit cards that are designed for people with low credit scores can help to show that people can use credit and pay it off in a timely manner. If they choose to apply for a credit card, it is crucial that they pay off the balance every month so they don’t accumulate more debt. People should also check their credit report on a regular basis to make sure everything is correct.
To learn more about rebuilding your credit following bankruptcy, visit our page on Chapter 13 bankruptcy.