Find Out How Filing Bankruptcy in South Jersey Can Help Restore Your Credit

Did you know that filing bankruptcy in South Jersey can restore your credit? The fresh start you receive in a bankruptcy can carry through to both your future financial and personal life!

Most people think that their credit problems cannot be repaired without a long period of no credit for 7 years, 10 years or 20 years! All of this is false! The filing of a bankruptcy in South Jersey through an experienced, professional South Jersey bankruptcy lawyer helps you restore your credit very quickly. Instead of waiting when debts seem too much, take the proactive step of filing for relief under the federal Bankruptcy Code. If you do this, you are wisely providing yourself with the fresh start that Congress has long intended be available to everyone. Bankruptcy laws have existed in every civilized society for over 2,000 years. Those faced with debt problems have available a reasonable, non-discriminatory way to rise above these issues.

South Jersey Bankruptcy Helps Rebuild Your Credit

Choosing to file for bankruptcy in South Jersey is a large first step to quickly rebuilding your credit. When you are able to discharge debt in a bankruptcy with the help of an expert South Jersey bankruptcy lawyer, you emerge from the case without the debt that bogged down your life and your credit score before the debt relief was sought. A primary negative when it comes to your credit score is the amount of your debt. Filing a bankruptcy helps this process by quickly eliminating debt. This can allow you to emerge from a bankruptcy with the same income but with no debt!

For instance, a Chapter 7 bankruptcy immediately and automatically stops all creditor collection actions as of the filing of the case. This type of case only takes about 3 months to complete in South Jersey with the help of a bankruptcy attorney. Once the case is filed, your primary job is only to appear by telephone or in-person at a brief meeting. Then the court issues a formal order discharging debt, allowing you to quickly emerge from the case without the debt issues that hurt both you and your credit score. In fact, even during a Chapter 7 case, in almost all cases creditors begin offering new, unsecured credit cards, although naturally caution should be used. No new cards should be applied for or accepted until after the discharge is entered.

Using a new credit card after your bankruptcy can help you quickly restore your credit. Let's say you are given a new Visa card with a credit limit of only $200. You start using that card by charging items of, for example, $100, and then you immediately pay off the full $100 balance in a timely manner as soon as the bill arrives. You are a credit hero! The creditor will quickly increase your credit limit by a large amount as you show responsible use of credit post-bankruptcy. By the way, the creditor is seeing if this will get you caught in the credit card debt trap, but you are using the new card to help you restore your credit and build your credit score.

Buying a Home or Car in South Jersey After Bankruptcy

You have regular income and want a new vehicle loan or vehicle lease. If this is true, you are eligible to easily obtain a new or late model used vehicle with reasonable terms as soon as you receive your bankruptcy discharge. Almost all banks and car loan companies follow this standard for those with regular income. Regular income means job income, pension, disability income, Social Security income, etc. Remember, the dealer or car loan company sees you as a person who just eliminated a bunch of debt, so you are now much better able to make your car payment each month!

For those with regular income who want to buy a home after bankruptcy in South Jersey, mortgage lenders have policies that vary from lender to lender. Many have a policy stating that a new mortgage loan will not be considered until 6 months to 1 year has passed after the bankruptcy. This is done to see if you have been responsible post-bankruptcy. If in the year after the bankruptcy you have run up lots of credit card debt, of course your chances for a mortgage approval decrease. Some banks have a 2-year waiting policy. However, these policies can be relaxed by the lender depending upon your income and post-bankruptcy record.

Again, by discharging debt in your South Jersey bankruptcy, you have immediately made yourself better able to make a mortgage payment each month, which inevitably helps your credit score. These waiting periods for a mortgage are not a problem for most people, since it takes some time to save a down payment and/or closing costs. Also, remember that without the bankruptcy that wiped out a bunch of your debt, you would not be able to save money and may not qualify for a mortgage at all!