Worried About Life After Bankruptcy?
If you take the right steps after bankruptcy, you can rebuild your credit so you can finance the purchases you need without getting back into trouble with your lenders.
I’m Ivan Trahan, a California attorney based in Temecula, and I have more than 35 years of experience helping clients understand the consequences of bankruptcy and their options for rebuilding their credit. Contact me today to schedule a free consultation.
Taking the Right Steps to Increase Your Access to Credit
One of the biggest concerns people have about filing bankruptcy is how it will affect their credit. Of course, if you are considering bankruptcy, your credit has probably already suffered from late payments and defaults. Bankruptcy gives you a fresh start and a chance to rebuild your credit.
Once your bankruptcy case is over, it may be possible to bring your credit score up to a stable, creditworthy level within two years if you take the right steps. These steps include:
- Obtain a new credit card as soon as possible. Charge relatively small amounts to each of them, no more than $200, and pay them off by making the minimum payments each month.
- Buy items on credit and make all of your payments on time. A jewelry store item for instance. Purchase a $200 item and make monthly payments.
- Check your credit report. If any of your debts that were discharged in bankruptcy appear on it, challenge them and get them removed or make the balances zero.
Taking on debts that you are sure you can afford to repay and then paying them back on time builds lender confidence that you have made a genuine fresh start and are not going to get into trouble again.
If you are concerned about financing a home or car, Federal Housing Administration (FHA) loans are available two years after bankruptcy, and I am familiar with auto lenders in the area who have programs for people who have filed bankruptcy.
Protecting Your Rights to Fair Employment
Another thing people are concerned about is whether they will get fired or have trouble getting hired after filing bankruptcy. It is a violation of federal law for an employer to terminate, refuse to promote or refuse to hire someone because that person has a history of bankruptcy.
If you are looking to work with a lawyer who maintains personal contact with clients so that you can get meaningful answers to your questions about the consequences of bankruptcy, don’t hesitate to contact me.