J Thomas Black
Board Certified, Consumer Bankruptcy Law- Texas Board of Legal Specialization
What is going to happen to your credit after your bankruptcy? You should know that credit after bankruptcy is going to be a bumpy ride, but it is going to get better after time. Here is what to expect. First, you will have to expect that it will be hard for you to finance anything. This includes cars, furniture, homes, or anything else you might try to finance. Companies will not be ready to trust you with a loan yet.
 
It will take a year or possibly a couple years to get to where they are ready to help you. Second, expect the credit card companies to all want your business. They will try to get you with a huge interest rate and fees like crazy. They know that they are safe because you cannot file for bankruptcy again for quite a while. This is why they become the hawks that are after you. Avoid these offers at all costs.
 
Last, expect that your credit will be worse than before your bankruptcy at first. After a year or so your credit will start to get better, but it will take about 1-2 years for your credit to really start to get back to normal. If you work at it, you can have a credit score in the mid-600's after one year, and 700's or higher after two years. My firm does a "credit clean-up" for you after bankruptcy at no charge, which will at least make sure everything is reporting accurately, and that your discharged debts show as a '0' balance.
 
Currently, but for a limited time, we are also offering all of our new bankruptcy clients a credit improvement educational course, "7 Steps to a 720 Credit Score" by Phillip Tirone, which will teach you how to reach a 720 credit score (which will guarantee you the best interest rates on loans) within 12-24 months after your bankruptcy. This course is sold on the internet for $1000, but under license from the publisher, we provide this to our clients at no charge. This offer is subject to cancellation at any time.
 
Credit after bankruptcy is something you will have to deal with. After a year or two, at least if you work at it, you will see the improvements you are hoping for. Just do not get stuck back where you were before bankruptcy because you decided to take out a few credit cards.
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