A bankruptcy filing will stay on your credit record for 10 years, but it is not a financial death sentence. It is a safe way to get a fresh financial start that is provided by federal law. Bankruptcy no longer has the negative stigma feared by many people. In fact, those who file for bankruptcy often receive offers for credit after they successfully complete the bankruptcy.
To find out if bankruptcy is right for you, contact Faletti Law Office, P.C.. Our lawyer has 29 years of experience helping Colorado individuals and businesses find debt relief. If you have questions about life after bankruptcy, just ask us. For a free consultation, please call (303) 438-8477or contact us online.
All Chapters of Bankruptcy Make It Possible to Start Over
If you successfully discharge and/or repay your debts via bankruptcy, you should be in good shape to repair your credit rating. Many people can re-establish their credit within 24 months of filing.
Under Chapter 7 bankruptcy, unsecured debts will be eliminated and secured debts may be resolved by returning the collateral. Because these debts will be taken care of, you will likely have enough money to pay your monthly bills as you start over.
In a Chapter 13 bankruptcy, you will repay most of your debts over a three- to five-year period. Your creditors will receive most of the money you owe them, so the effect on your credit rating is not as bad.
Re-establishing your credit after bankruptcy is possible if you follow a few simple rules. Make sure you pay all bills and loans on time every month. Keep a close watch on your debt-to-income ratio so you do not spend more than you have. Also, check your credit report three months after your bankruptcy is complete. You need to ensure that discharged debts have been removed by all three major credit reporting agencies. If you find mistakes on your credit report, work to have them corrected immediately.
Northern Denver Bankruptcy Help
Harold Faletti Law Office, P.C. is based in Broomfield, CO but has served many in Arvada, Westminster, & Thornton. To schedule a free consultation with an experienced attorney, please call (303) 438-8477.