Bankruptcy offers borrowers who are struggling with massive amounts of debt a great opportunity to discharge much of their debt and achieve a financial fresh start. The process of alleviating some large debt from a borrower’s shoulders, however, does mean that the borrower will take a hit on his credit report, as bankruptcy filings can stay on a credit report for 7 to 10 years. However, even if a borrower has a bankruptcy listed on his credit report, there are a number of things he can do after having filed for bankruptcy to:
- Build his credit score back up
- Become eligible for low-interest loans and credit offers within months of filing for bankruptcy
- Minimize his chances of becoming overwhelmed with debt in the future and potentially needing to file for bankruptcy again.
Tips for Boosting Credit after Bankruptcy
Some of the actions that borrowers can take to start slowly rebuilding their credit after having filed for bankruptcy include:
- Reducing (or eliminating) unnecessary expenses – This will involve borrowers developing a budget that outlines their income and their various monthly expenses. Among these expenses, borrowers should pinpoint which are luxury expenses that can be eliminated in order to help them live within their means and possibly even save some extra money each month. Being diligent about living within their means can be key to helping them avoid accumulating additional debt after bankruptcy.
- Focusing on paying off any residual debt – Although a substantial portion of a borrower’s debt will be discharged through bankruptcy, there are certain types of debt – like tax debt, student loan debt and spousal support-related debt – that a borrower will still be responsible for even after bankruptcy. In this case, borrowers should concentrate on paying down this remaining debt so they can inch forward to being as debt-free as possible.
If you are overwhelmed by seemingly insurmountable debt and are looking for a financial fresh start, contact the trusted Colorado debt relief and bankruptcy lawyers at the Law Office of Jon B. Clarke, P.C. Our experienced legal professionals are committed to providing each of our Clients with the debt relief assistance they need, and we will work tirelessly to ensure that our Clients’ cases are resolved as favorably and efficiently as possible. For a thorough assessment of your situation, along with expert advice regarding the best manner in which to move forward to unburden yourself from debt, call us at (866) 916-3950.