Here’s a thought: survey bankruptcy lawyers in dallas tx to find out what the major concerns are about bankruptcy. Why do folks who may benefit in a major way from bankruptcy shy away from it? Why do folks put it off when they know they should file bankruptcy? Oftentimes, they wonder about whether they’re going to be consigned to no credit for 7-10 years, or even forever.
For many, the 800 lbs gorilla in the room revolves around getting credit. This two edged sword regarding fears about life after bankruptcy revolves around the mismanagement of credit for so long that you feel you’ve been pulled into a whirlpool of financial troubles. Sometimes a difficult situation like medical debt magnified problems that were not quite at a disastrous financial level but which quickly got out of hand. Rebuilding credit can be daunting when considering all of these factors.
Following a bankruptcy, the discharge will have cleared credit, so re-establishing good and wise use of credit and documenting this on a credit report will be a step that many will take following ch. 7. For those doing a ch. 13 reorganization bankruptcy, they can even start building credit again during the plan. One rule of thumb that you could consider is that the speed with which you rebuild credit can largely depend upon many financial factors but there are some principles to consider.
One of the major issues to rebuild credit depends upon the magic words: pays as agreed. Some credit reports show it as “paid as agreed.” And either way, bankruptcy will only go so far to clear a person’s credit. Following bankruptcy, you will need to basically become OCD about making sure your monthly bills are paid on time.
Ironically, the people who typically are in the difficult situation of having filed Chapter 7 bankruptcy may be able to re-establish their credit more easily than others although the field is open to those who are willing to be patient and diligent in paying their bills.