Fresno Bankruptcy Attorneys can help you get a fresh credit start

So, Fresno Bankruptcy can actually start you on the way to great credit? This is an important question to ask your Fresno Bankruptcy Attorney. To begin , you need to understand that the old adage : “the bigger they are – the harder they fall.” Is absolutely true here.

If your credit is in the 700’s or above, it is correct that your credit is going to take a significant drop after filing for bankruptcy. However, most people that file bankruptcy have been wrestling to keep up their payments for  several months. So their credit is already in the 500’s or lower.

The way that credit companies determine your credit score has to do with the high balances you have on your credit cards and unsecured debt and how many slow payments that show up on your credit file. Once you file for bankruptcy, the balances are wiped to zero and the credit companies can no longer show any slow payments.

So your credit slate is like starting over. Typically a person will see a bigdrop in their credit for a limited period, but as you begin to make smart financial decisions your credit score will begin to slowly rise. Your slow payments no longer appear and your report has no over the limit balances.

People often get a credit card in the mail within 9 to 12 months of filling bankruptcy . Of course the rates can be extremely high . If you choose to accept a credit card, be careful! Only use the credit card for gas and incidentals and pay it off every month .

After 12 months or so, you’ll be able to buy an automobile on credit. But don’t run out and buy the car of your dreams. Look at that car as a credit tool. Purchase a car that has very affordable monthly payments that you can easily afford. Remember, this car is not your dream car. It’s a car to get you back into the American Dream. It will help you re-establishcredit.

Every day , people often ask if bankruptcy will ruin their credit . The true fact is, most people already have bad credit and the quickest process to start a new credit life is through a thoughtful bankruptcy.

Obviously, everyone needs to make the decision to declare bankruptcy with caution and with sound advise from an attorney. We suggest you contact a Bankruptcy Attorney in Fresno to review all of your options.

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