Before you file for bankruptcy in New York, you might want to investigate and plan how you will use the experience to make your financial future more secure. This is actually exactly what bankruptcy is set up to do – to allow consumers to break free of debt that holds them back so they can make a true fresh start. It may take some time to climb the ladder to the top of the credit ratings but the amount of time involved may be far less than you may fear if you take the right steps.
NerdWallet explains that if you file a Chapter 7 bankruptcy, you will get some relief in terms of your credit score almost instantly because your debt-to-income ratio will improve once your debts have been discharged. Also, bad marks on your credit report about late or missed payments will get older and their impact will lessen.
As soon as you can, you should actively seek some credit and use it wisely. This may be first in the form of a secured credit card where you front the money against which you borrow. Use it sparingly and pay it off every month and soon you may be on your way to an unsecured credit card. Auto loans also offer good opportunities to re-establish credit for people fresh out of bankruptcy so long as you stay current on all payments.
If you would like to learn more about how a personal bankruptcy might be able to help you get out from beneath an ever-mounting pile of debt and get back on your financial feet, please feel free to visit the debt relief page of our New York bankruptcy website.