How Will Bankruptcy Affect My Credit?
A major concern of individuals when considering bankruptcy is the affect that it will have on their credit. Wondering if the bankruptcy will reflect negatively on their credit history, many fear that they will not be eligible to receive a loan after bankruptcy in Atlanta is filed. Fortunately, not all creditors perceive bankruptcy in the same light. There are creditors who offer loans to individuals post-bankruptcy. While these loans may have smaller limits and higher interest rates, they assist in credit rebuilding.
Often times, people are surprised to learn that their credit score has not been severely damaged by bankruptcy. While continuous default on payments will reflect negatively on your overall financial health, those who experience an overwhelming amount of debt already have a substantial negative credit history.
Eliminating your Debt with an Atlanta Bankruptcy Attorney
Bankruptcy is used to reduce or put an end to your debt while removing your negative credit reputation. Once you have filed with an Atlanta bankruptcy lawyer, your credit is wiped of previous high balance and delinquent accounts which opens the door to rebuilding your credit. After you have completed the filing process, your credit score will be monitored and compared to other bankruptcy filers for an equitable comparison. Scores have been improved after filing due to the score being calculated with consideration of recent eliminations of debt.
The best technique to rebuild your financial future is to assess your income, expenses and previous spending habits. It is best to make adjustments to your financial lifestyle, such as create a budget, track your spending and monitor bill due dates, so that you can become financial stable. Once you have adopted these simple practices, apply for a manageable line of credit to begin reestablishing your credit history. Once you have established new lines of credit, it is critical to keep a low balance and may consistent payments. Being consistent in your payment history will show creditors you are reliable, and improve your chances of receiving credit in the future.