ANSWER:
Although everyone’s situation varies, it may take as little as 24 months to re-establish your credit after filing bankruptcy.
However, you must be prepared to establish new lines of credit and pay timely. For most post bankruptcy filers, simply applying for secured credit cards and using them and paying them timely (no late payments!) will put them on track toward a good credit score within the 24 month period.
When considering whether to exercise your option to file under the U.S. Bankruptcy Code, assuming you qualify, consider the amount of debt you are carrying. For example, if you are carrying upwards of $30,000 of unsecured debt with only $200 dollars of disposable income to make monthly payments on said debt, it would take you 12.5 years to pay off the debt, assuming no interest and no settlement. Filing for bankruptcy would allow you to shed the debt and rebuild your credit over 24 months. The math is not too complicated here.
No comments:
Post a Comment