Speak With a Lawyer to Learn the Truth About Life After Bankruptcy
People who are considering bankruptcy often believe that their credit rating will be permanently ruined if they file. However, the truth is that you can re-establish your credit, typically within two years of a bankruptcy filing.
The Law Offices of Chad M. Hayward, P.C., helps people in Illinois take control of their finances. Our experienced bankruptcy attorney will examine your finances and discuss your debt relief options with you. To schedule a free consultation, please call 888-804-8641 or contact us online.
How Bankruptcy Affects Your Credit
A bankruptcy can remain on your credit record for up to 10 years. Even before it is cleared from your record, however, you may find that your credit rating improves. Creditors examine your debt-to-income ratio when they decide whether to offer credit. After you successfully complete bankruptcy, your debt-to-income ratio will be much improved.
One important step you can take is to obtain a copy of your discharge as proof that all dischargeable debts have been cleared. You can get a copy of your discharge by contacting the clerk's office of the United States Bankruptcy Court of the Northern District of Illinois.
When you have the discharge report, you should check your credit report three months after your bankruptcy is complete to make sure all discharged debt has been removed. If there are errors, you will have proof of the discharge to give to the credit reporting agencies so the errors can be corrected.
You can work to improve your credit after bankruptcy by taking a few simple steps:
- Pay your bills and loan payments in full and on time.
- Keep track of your spending. You do not want your debt-to-income ratio to return to the level that necessitated filing bankruptcy.
- Make a budget and stick to it. Get help from a financial professional if you are unsure of how to create a reasonable budget.
Recovering From Bankruptcy in Illinois
Please call our office at 888-804-8641 to schedule a free consultation. We have offices in Chicago, Aurora, Joliet, Schaumburg, Palos Heights, Northbrook, Oakbrook and St. Charles.
