Does Bankruptcy Prevent me from Obtaining Credit in the Future?
Reestablishing credit after bankruptcy may seem like an insurmountable problem. While bankruptcy filings remain on your record for a number of years, you can definitely obtain credit in the future. Keep in mind that every responsible financial act you make appears on your credit report. By learning ways to build your financial reputation, you can create a healthy financial future in Queens or wherever you may live.
Under the Federal Rules of Bankruptcy Procedure, individuals must obtain credit counseling prior to filing for bankruptcy unless the United States trustee determines this requirement does not apply in the district. This counseling can represent an important first step in understanding the circumstances behind debt issues, which can help individuals avoid similar situations later. However, credit counselors may not help you reestablish credit once you achieve a bankruptcy discharge.
One way to build your credit rating might be with a secured credit card, where you deposit funds to establish a credit line that you can use to demonstrate your ability to responsibly make periodic payments. You can usually obtain unsecured credit from credit card companies or credit unions. However, some credit card providers or other supposed credit repair companies look for a quick profit at your expense. You need advice from an experienced Queens bankruptcy attorney who can guide you through the process — and help you avoid scammers that can take your money while potentially leading you back into debt.
At the Mark E. Cohen, Esq., we believe bankruptcy can mark a new beginning, rather than permanent financial devastation. With over two decades of experience, the firm helps clients understand the full range of available options so they can make informed decisions throughout the process.