Can I Rebuild Good Credit After Filing Bankruptcy In Georgia?

Filing for bankruptcy can be an important first step towards giving yourself the freedom you deserve. When you file bankruptcy and get relief from your debt, you no longer owe any money to your creditors.

 In order to preserve your newfound financial stability, you must take care to rebuild your credit and avoid common pitfalls. If you take some simple steps to rebuilding your credit after bankruptcy, your credit score will start to rise.  After as little as 18-24 months, your credit report can be a positive one.

Improving Your Credit Score

There are a number of things you can do to improve your credit score, including the following.

 

·         Acquire a Secured Credit Card. It may seem counterintuitive, but in order to rebuild your credit, you will need to take out loans and repay them. A secured credit card gives you credit you need to start to rebuild your credit.

 

·         Take out an Installment Loan. An installment loan is any kind of a loan that requires monthly payments, such as a car loan. You must make your payments on time.

 

·         Check and Correct Your Credit Report. After your bankruptcy has been discharged, check your credit reports. Contact the credit agency where the mistake appears to have it corrected.

 

Once you have completed a filing for Chapter 7 or Chapter 13bankruptcy your financial future is going to look brighter. King & King is dedicated to helping clients file for personal bankruptcy and rebuild their lives afterwards. For a free initial consultation, contact our office at 404-524-6400.

Considering Bankruptcy? This Is What You Should Know.

Filing for bankruptcy is a serious decision. Our attorneys at King & King understand that and are here to help. We will present you all your options and help you decide which bankruptcy will work best for you. Here are some common reasons why someone may consider filing for bankruptcy:

1. Overwhelming debt: If your debts are so high that you cannot realistically see a way to repay them, even if you were to stop using your credit cards and tighten your budget, bankruptcy may be a good option.

2. Constant harassment from creditors: If you are being constantly pursued by creditors or debt collectors, bankruptcy can help provide relief from this harassment.

3. Threat of wage garnishment or property seizure: If your creditors have obtained a court judgment against you and are threatening to garnish your wages or seize your property, bankruptcy can help protect these assets.

4. Unexpected life events: If you have suffered a significant setback such as a job loss, medical emergency, or divorce, bankruptcy may be a good option if you cannot manage your debts.

What Type Of Bankruptcy Is Right For You?

Chapter 7 bankruptcy is often referred to as a "liquidation" bankruptcy, as it involves selling certain assets to pay off debts. Chapter 7 is typically best suited for individuals with few assets and a large amount of unsecured debt, such as credit card debt or medical bills.

If you are considering Chapter 7 bankruptcy, here are some factors to keep in mind:

1. Eligibility: You must pass a means test to determine if you are eligible to file for Chapter 7 bankruptcy. This test compares your income to the median income in your state and considers your expenses and debts.

2. Exemptions: Some assets, such as your home, vehicle, and personal belongings, may be protected under state and federal exemptions.

3. Timing: The process of Chapter 7 bankruptcy typically takes about 4-6 months from start to finish.

Here are some factors to consider if you are thinking about Chapter 13 bankruptcy:

1. Eligibility: To be eligible for Chapter 13 bankruptcy, you must have a regular income and your debt must fall within certain limits.

2. Repayment plan: In Chapter 13 bankruptcy, you will propose a repayment plan to repay a portion of your debts over a three-to-five-year period. This plan must be approved by the bankruptcy court.

3. Protection of assets: Chapter 13 bankruptcy allows you to keep your assets, such as your home and vehicle, as long as you make the payments required under your repayment plan.

4. Timing: The process of Chapter 13 bankruptcy typically takes three to five years from start to finish.

If you are considering bankruptcy, call the bankruptcy attorneys at King & King who can evaluate your specific financial situation and help you determine the right option for you. Call Today at 404-524-6400.