Understanding What Happens when you Declare Bankruptcy

In these difficult times with so many people losing their jobs and drowning in debt, you may be faced with a question of whether or not you should declare bankruptcy. Understanding how bankruptcy will impact your life is very important before you decide to speak to a bankruptcy lawyer Denver residents use.

Your Credit Reports
Once you file for bankruptcy your bankruptcy will remain on your credit report for 10 years. This is a very long time to be faced with a bad credit rating and will have a huge impact on many of your financial strains. You may be denied everything from rental apartments to credit cards which means you will have to rely heavily on cash for all of your transactions. Having a plan to rebuild your credit score will be imperative to getting your credit back into good standing.

Keep Track of Your Credit Report
Once you have declared bankruptcy make sure that the information on your credit report is correct. You should then get a free credit report annually in order to keep track of how your credit rating appears each year following your bankruptcy.

Keep Track of Your Bills
The best way to start to rebuild your credit is to pay all of your bills on time. How and when you pay your bills makes up 35 percent of your credit rating and paying bills such as utilities, phone and other services will be a quick way to start looking good on paper again. You should be diligent and keep a calendar marking when each bill is due and keep track of money coming in to be certain you can cover your bills each month.

Rebuild Your Credit
Try to get at least one credit card you can use to help build your credit rating back up. It may be difficult to find someone who will give you the card, but secured cards are available by leaving a deposit. Then use the card and pay it off immediately for small purchases you would have made wit h your debit card.

A bankruptcy lawyer Denver area relies on can help you with your bankruptcy decisions and guide you on whether it is right for you.ve

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