How Long Do You Have to Wait After Filing Bankruptcy to Rebuild Your Credit?
Understanding How Bankruptcy Helps You Get Better Credit
When you have fallen behind on your bills, filing bankruptcy can be the first step toward repairing your credit. This does not necessarily happen overnight, but generally, the sooner you file bankruptcy, the sooner you can start taking positive actions to build good credit.
At Jamie L. Gingold, PC, GingoldBankruptcyLaw.com (Formerly practicing with Gingold & Gingold LLC), we are often asked to advise clients on how long they will have to wait after filing bankruptcy to rebuild their credit. While every case is unique, we find that, in most cases, our clients are surprised to find out how quickly they can obtain credit.
Getting Your Debts Wiped Out So You Can Make a Fresh Start
When you can start rebuilding your credit depends on when you get the bankruptcy discharge that wipes out your debts. In Chapter 7, a discharge normally takes three months. In Chapter 13, your debts are discharged once you complete your three- to five-year repayment plan.
Once you receive your bankruptcy discharge and you have a stable income, you can begin rebuilding your credit with lenders who will loan you money as long as you can repay your debts on time.
You may need to start small, but remember that once you get your discharge, you will have fewer or no debts, which will make you more attractive to lenders. Once you get credit again, as long as you make your payments on time, your credit rating will increase over time.
Rebuilding Credit After Bankruptcy · Contact Us for a Free Initial Consultation
Our firm is made up of two experienced Atlanta metro area lawyers: Ira D. Gingold, who has been a bankruptcy attorney since 1971 and Court-appointed Bankruptcy Trustee from 1971-2013, and Jamie L. Gingold, who has been practicing bankruptcy, real estate and business law since 2001.