Bankruptcy unfortunately may affect your credit. Both Chapter 7 and Chapter 13 bankruptcy stay on your credit report for years and may affect such matters as whether you are able to get enough credit to buy a house or car or obtain a new credit card. This is one reason why it is important to make sure that you truly need to file for bankruptcy by consulting with a Chicago bankruptcy lawyer before filing. There are also ways to conduct credit repair. At Kaplan Law Firm, LLC, we can help you connect to a program to rebuild your credit score in 12-24 months. There are certain steps that you should follow in order to improve your credit.Understanding the Importance of Credit Repair
A Chapter 7 bankruptcy may stay on your credit report for up to 10 years. Although completing the Chapter 7 bankruptcy process takes only 3-6 months, you obtain a mark on your credit in exchange for your fresh start. This may make it impossible to get a mortgage, and after completing Chapter 7 bankruptcy, you cannot receive another discharge for another six years from the date of filing. If something worse happens, such as a medical emergency that puts you deep into debt during those six years, you will be stuck with it for a certain period.
The Fair Credit Reporting Act allows a Chapter 13 bankruptcy to stay on your credit for up to 10 years after you file, but in most cases, it is removed after seven years from the time that you file. Most Chapter 13 bankruptcies take 3-5 years to complete, and then they stay on your credit report for a few years afterward. While you are not limited in how many times you may file for bankruptcy, you are limited in how often your dischargeable debts may be discharged. If you received a first discharge under Chapter 13, you may not get a discharge on a Chapter 7 case for six years from the time that you filed under Chapter 13, with some exceptions. If you received a first discharge by filing for Chapter 7 bankruptcy, you may not receive a discharge for a Chapter 13 bankruptcy filed within four years from the date that you filed for Chapter 7 relief.
Accordingly, it is important to understand how to repair your credit. Often, credit repair programs are scams. It is unlawful to remove accurate information from a credit report, and credit repair programs are often so expensive—costing thousands of dollars—that they may adversely affect your budget. At Kaplan Law Firm, LLC, we recommend following a particular program if you wan to improve your credit score. This program is called 7 Steps to a 720 Credit Score. It provides a road map, rather than an eraser.
The primary goal of this program is to show that you have taken advantage of your fresh start and found a new path. You should not pretend that a bankruptcy never happened. Instead, you need to show that you have changed your financial habits and can be entrusted with credit.
The company that provides this program for $1,000 allows us to offer the program to our clients for free on a trial basis. Our firm is excited to help you rebuild your score efficiently and successfully by using this program.Discuss Your Needs with a Chicago Lawyer
Our firm has looked at numerous credit repair programs, and we believe that many of them are ineffective at best and harmful at worst. However, we know that our clients need help rebuilding their credit after bankruptcy. Unlike some firms, we take steps to help show you how to use your fresh start after bankruptcy to improve your financial circumstances. If you are thinking about filing for bankruptcy but are concerned about credit repair, a Chicago attorney at our firm may be able to help. We represent debtors who need a Chapter 7 or Chapter 13 attorney throughout Cook, Kane, Will, DuPage, and Lake Counties. Contact us at (312) 294-8989 or via our online form to set up a free appointment and get started on rebuilding your finances.