Chapter 7 Bankruptcy Lawyer Bloomington IL
As a Chapter 7 bankruptcy lawyer in Bloomington Illinois can attest, when a person makes the decision to file for bankruptcy, it is usually after they have struggled for quite some time financially in an attempt to make ends meet. This struggle can cause a great deal of stress and worry, so that often, bankruptcy comes as a relief.
A Bloomington IL Chapter 7 bankruptcy lawyer understands that even with the relief that bankruptcy brings, many people worry what the long-term effects the bankruptcy will have on their credit. They wonder if they will be able to qualify for vehicle loans, mortgages, and credit cards.
How Do I Begin Rebuilding My Credit?
If your credit has been damaged for virtually any reason, it is time to start thinking about rebuilding it. A solid credit rating is essential for securing financing from everything from cars to housing to many forms of employment. As a result, it is important to take damaged credit seriously and to seek professional guidance from a Bloomington, Illinois Chapter 7 bankruptcy attorney whenever necessary. Sometimes, fixing damaged credit is as “simple” as working with an attorney to right mistakes on your credit report. This is especially true if your identity has been stolen or your personal financial information has been compromised through no fault of your own. At other times, rebuilding your credit can be a time-intensive process and may require ongoing legal and financial guidance. In either event, the experienced Bloomington, IL Chapter 7 bankruptcy attorneys from Pioletti & Pioletti can help.
Credit Rebuilding Basics
The first step you should take when attempting to rebuild your credit involves correcting any mistakes that appear on your credit report. With the assistance of a Bloomington, IL Chapter 7 bankruptcy attorney, this is a relatively simple way to start your journey off on the right foot. Also, you don’t want to have to “rebuild” more than you absolutely have to. If correcting a mistake will allow you to have a better score from the start, then that’s great!
Second, you should speak with your attorney about your current financial situation and any current debt you may have. You are likely going to need to take different kinds of steps if you currently have access to a significant income than you will if all of your income goes immediately to necessities, bills and debt payments. A Bloomington, IL Chapter 7 bankruptcy attorney will be able to help you create a strong debt management and credit rehabilitation strategy based on your unique circumstances.
Rebuilding your credit can be an intimidating process, especially because most credit challenges cannot be solved by correcting credit report mistakes alone. Kudos to you for thinking about taking steps to better your financial future. Although it may not always be easy, with the assistance of an experienced attorney, you should be able to make significant strides if you are dedicated and keep an open mind about different credit rehabilitation options that are available to you.
Legal Assistance Is Available
If your credit has been damaged and you need to begin repairing it, please consider scheduling a consultation with an experienced Bloomington, IL Chapter 7 bankruptcy attorney before committing to a plan of action. Lawyers experienced in credit rehabilitation may be aware of options and opportunities you have no knowledge of. They may also be able to guide you through those options that are most relevant for your situation. For example, you may be resigned to filing for bankruptcy, but an attorney may be aware of how to navigate you through an alternative strategy that will do less short-term damage to your credit score. Please consider speaking with an attorney today. Meeting with a lawyer will not commit you to taking any specific action, it will simply allow you to make an informed decision about how to best begin the process of rebuilding your credit.
Rebuilding your credit score after bankruptcy is not as hard as many people think. Being financially responsible by living within your budget and paying your bills on time goes a long way in raising that score.
There are some things to keep in mind, however, that tend to raise red flags with many potential lenders when they look at your credit history. One of those items is having multiple lines of credit open. Shortly after your bankruptcy has been discharged, you will most likely begin receiving credit card offers. It is okay to enroll for one or two of these cards to help re-establish your credit, but do not make the mistake of enrolling for every card that comes your way.
Cash advances on credit cards are another warning that potential lenders do not like to see. It may indicate that the person is having financial difficulties and is paying their expenses with cash advances from credit cards.
Every time you apply for credit, the inquiry shows up on your credit report. A lot of inquiries on a person’s credit can leave lenders feeling skittish about your financial situation and wondering why you are “shopping around” for credit.
Only making the minimum payments on your accounts may be okay with your current creditors, but potential lenders may consider that as a sign you are struggling financially. That is why it can be beneficial to pay off what you charge every month. You will also save on interest rates.
Not only do potential lenders look for these items when evaluating your creditworthiness, but existing creditors monitor customers’ credit scores as well. Any of these activities could also have an adverse effect on your current accounts as well, causing your creditor to decrease credit limits or in some cases, cut them off entirely.
What About Renting an Apartment?
The good news is that, as long as you pay your bills and avoid unnecessary debt, you will be able to rebuild your credit within a few years.
In the interim, however, there are some issues you may have to deal with until your credit score has increased. One of those issues may be renting an apartment. Today, there are landlords that run credit checks on prospective tenants. The theory is that if you don’t pay your bills, you won’t pay your rent.
Not all landlords run credit checks. Many times, the ad for the apartment will say whether or not a credit check is required. Larger complexes or landlords with multiple properties tend to require the running of credit reports. Individual property owners often don’t require the report.
If the landlord at an apartment you want to rent does run a credit report, it does not mean they will not rent to you. When you apply, bring along bank statements, pay stubs, your monthly budget and any other documentation you have that will show that you are financially able to pay the rent. If your credit was good before the circumstances of your bankruptcy, provide the landlord with proof and explain what the situation was that led you to file.
If you have a good rental history, provide the landlord with those references. If you can afford to financially, offer to pay more than the required security deposit. Even better to the landlord, again if you can afford it, maybe an offer to pay several months’ rent upfront.
Contact a Chapter 7 bankruptcy lawyer in Bloomington IL for Help
If you are struggling with overwhelming debt, bankruptcy may be the answer to help you get back on your feet and able to plan for your future. Contact an experienced Chapter 7 bankruptcy lawyer Bloomington IL clients recommend from Pioletti Pioletti & Nichols today to find out what your best options may be.
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