Is one’s credit ruined forever after a bankruptcy?

| Jun 21, 2021 | Personal Bankruptcy |

There are many purchases that people in New York make every day. Some of these purchases are smaller purchases for their daily life, but other purchases are much larger though. People may by various electronics, vehicles, large vacations, homes and other larger purchases. Often times people do not have all the money needed to make these purchases at one time and take out loans or use credit cards.

When people take these loans out they usually budget for the monthly payments and make sure that they are able to pay them. However, if circumstances suddenly change and they are no longer able to make the payments, it can create problems and even force people to take on more debt to keep up. If the debt becomes overwhelming people may need to consider filing for bankruptcy.

This can sound like a scary proposition and may make people feel like they will never be able to get loans in the future, significantly limiting their ability make bigger purchases. However, people can rebuild their credit and be able to live a normal life in the future.

Ways to rebuild credit after bankruptcy

Rebuilding credit will take time, but it can be done. There are ways that people can help rebuild their credit faster as well. It is important that people pay their monthly bills on time. They should try to save money even if it’s a small amount for future emergencies so people do not need to use loans as much. If people do have a credit card either do not use it or make sure the amount can be paid off at the end of the month.

People could also obtain secured credit cards, which require people to pre-pay the amount on the cards. This can help people make monthly payments and build credit. They could also take out smaller manageable loans to make it easy to pay them off in full. People should also stay on top of their credit report to ensure things are being reported correctly.

Filing for bankruptcy can help free people in New York of their debt. While it may affect their credit in the short term, there are ways to rebuild credit and in the long term it will not affect people’s lives dramatically. Experienced attorneys understand the benefits of bankruptcy and may be able to guide one through the process.