When you hire a Bankruptcy Lawyer's services in Dallas, the first thing he will say is to focus on rebuilding your credit. This step is because life goes on even after you come out of the bankruptcy proceedings. And you will have to strive towards re-building your financial credibility.
Let's see how it impacts your credit and what can be done
Impact of bankruptcy proceedings on credit
A Dallas Bankruptcy Lawyer will suggest that your credit will be severely impacted upon bankruptcy no matter what chapter you go with. It causes a substantial decrease in your overall credit score. Consumers report a drop of anywhere between 120 to 200 points. The actual drop will depend on severe was your non-payment pattern before filing for bankruptcy. But here's the good news, filing for bankruptcy will show your intention to reorganize your payments in a logical manner. As such, it may positively affect your credit score later. Let's see what else you can do to rebuild your credit.
How to rebuild your credit?
1 – Keep up payments on outstanding accounts not related to the bankruptcy
2 – Work towards a stable job and avoid job-hopping
3 – Keep up payments with new credit cards
4 – Don't shy away from applying for new loans or credit. But do it strategically so that future repayment problems don't negatively impact your credit.
To conclude
These were a few points on credit rebuilding you need to remember when discussing your case with a Dallas Bankruptcy Lawyer.
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