Life After Bankruptcy

Tucson Bankruptcy Lawyers

What happens after your bankruptcy is final?  Most people are concerned their life will be in tatters and they will never be able to obtain a loan again.  This is just one of the many bankruptcy myths that abounds and it is quite false.  In actual fact, after your bankruptcy is final, you are debt free and ready for a “fresh start”, (with the exception of those debts which are exempt from bankruptcy, such as taxes and student loans).  Being free from debt provides great relief to most individuals who have gone through the process.  With proper guidance and financial advice from an experienced bankruptcy lawyer at the My AZ Lawyers,  you will be able to get back on your feet and on the right track.  Our dedicated Tucson bankruptcy lawyers will help you get a positive start to your “Life After Bankruptcy”.

While your credit history will reflect a bankruptcy for a number of years and your credit score will go down immediately, once your bankruptcy is final you can begin to improve your score right away.  Applying for small secured credit cards or department store cards that you repay in full each month may bring you higher interest rates, but will allow you to re-establish your credit rating.  Filing for bankruptcy in Tucson, AZ provides individuals and families with an opportunity at a fresh start.  Contact our Tucson bankruptcy law office to learn more about how life is after filing for bankruptcy.

The following is a list of several things you can do to rebuild your credit after filing for bankruptcy in Arizona:

• Pay your bills on time!
• Open a new bank account, make regular deposits
• Apply for a new debit card from your new bank account and use it responsibly
• Avoid Payday Loans”
• Live within your means!
• Make wise choices when seeking credit, avoid high interest
• Paying all bills in a timely manner

Establishing Credit After Filing Bankruptcy

While filing bankruptcy in Tucson does provide you with a financial clean slate, it does not free you from the usual rules of commerce and finance. If you have a mortgage payment or car payment, you will still need to pay them following your Chapter 7 or Chapter 13 proceedings. After bankruptcy it will be more important than ever for you to address all of your financial obligations in a responsible manner, so that you will have the best chance of re-establishing your credit after filing for bankruptcy protection.  Your action will affect your future credit opportunities.

Most people are able to obtain good credit in 2 – 3 years following filing for chapter 13 or chapter 7 bankruptcy. Smaller loans like an unsecured or secured credit card are typically available to consumers with regular income within a few months or filing bankruptcy as the credit card companies are willing to extend you credit after bankruptcy because you are basically debt free.  Car loans are also readily available following bankruptcy but are usually at a higher interest rate. Home mortgage loans will typically take 2 – 3 years after bankruptcy before you will be able to qualify, in some cases as little as one year, so long as you meet other financial requirements established by your bank.  Our Tucson debt relief experts can assist you in establishing credit after bankruptcy.