In Queens, Re-establishing Credit After Bankruptcy Is Possible
More than 20 years of experience helping individuals in Queens rebuild their credit
Bankruptcy is often referred to as a “fresh start” because it gives you a chance to wipe the slate clean and begin again. But many people are afraid of bankruptcy, asking the understandable question, “Does bankruptcy ruin my credit?” In Queens, and throughout the five boroughs, I answer that question for nervous clients who come to my firm, Mark E. Cohen, Esq., seeking reassurance.
With more than 30 years of experience handling debt relief and bankruptcy matters, I explain that once you’ve been through the bankruptcy process, you have a great opportunity to take control of your finances. Your credit will be affected, but not destroyed. The first step to take after your filing is to reestablish your credit responsibly.
Lessening your credit score damage
The key to minimizing your credit score damage when filing bankruptcy is to take advantage of the opportunity to improve your overall financial fitness. You have several opportunities to pursue, including:
- Renegotiating terms with some of your creditors. By continuing to pay on certain debts and maintaining those accounts, you will avoid having to entirely re-establish credit.
- Monitoring your credit report to ensure that your accounts are accurately listed as part of a bankruptcy proceeding.
- Rebuilding your credit responsibly by keeping up to date on payments or any new or existing debts.
Among the many bankruptcy myths my Queens clients are concerned about, the notion that you will never get credit again is a common one. I am happy to discuss any fears or worries you have about your financial future as you consider whether bankruptcy is right for you.
Rebuilding credit using a secured credit card
Responsible use of a credit card is an excellent way to rebuild your credit rating. Following a bankruptcy, you may be eligible for a secured credit card. These are specifically geared toward people who need to re-establish credit or repair a poor rating. A secured credit card:
- Requires a cash collateral deposit that becomes the credit line for that account
- Carries an annual fee and higher interest rates than regular, unsecured cards
- Allows you to make purchases and pay for them in full to demonstrate your commitment to improved financial responsibility
Be very careful before accepting a secured credit card offer. Fees vary dramatically, and some lenders take advantage of clients who are compromised by their unstable financial situations. Working closely with a skilled bankruptcy attorney is the best bet for learning about your options for reestablishing credit safely and responsibly.
To ease the stress of overwhelming debt, call a bankruptcy lawyer in Queens
All too often, good people find themselves in financial trouble that quickly spirals out of control. For more than 30 years, I have helped people like you understand the available options, make informed decisions and navigate through the complex process of filing for bankruptcy.
Located on Queens Boulevard in Forest Hills, I offer a wide range of services to individuals and families suffering from the weight of debt. Call Mark E. Cohen, Esq. at 718-487-9979 or contact me online to schedule a free consultation.