If you are thinking about filing for bankruptcy in Michigan, there is a good chance that your credit rating is already bad and getting worse. The only way to stop the slide from bad to worse is to file for bankruptcy.
Once you file for bankruptcy, your credit report is wiped clean and reset. And even though your bankruptcy is reported for 10 years, late payments, unpaid debts and high balances are removed. Instead of the derogatory remarks, these accounts will show “included in Chapter 7 bankruptcy” or “included in Chapter 13 wage earner plan.” This notation is not as harmful as the derogatory comments.
In addition to getting a clean slate, your debt-to-income ratio is reduced and your credit score will increase.
Within 3 months of your Chapter 7 discharge, you can actively start to improve your credit rating. Credit card companies know that after you can’t file again for six or eight years. So, you are a good prospect for a credit card. You will receive a number of credit card offers after your discharge has been entered or your plan has been completed.
The quickest way to restore your credit is to use your new credit card and make sure that you pay it in full every month. Keep your balance at one half of the limit or less. One factor in your credit score is how close your balance is to the card limit.
Your regular use of the credit card, low balance, and never late for a payment history will result in a steadily increasing credit rating. It is not uncommon for people in your situation to get a car loan within one to two years after filing for bankruptcy in Michigan.
If you have any questions about Bankruptcy in Michigan, call the law office of Michael J Shovan PLC right now at (877) 233-9389 and speak to an attorney who can answer your questions. Michael J Shovan PLC is a debt relief agency and we help people file for bankruptcy under the laws of the United States Constitution, Article 1, Section 8.
This post is for informational purposes only and is not intended to constitute legal advice. Any relationship with this firm will be established by a written agreement signed by both you and me. If you have read this far, you need to call me at (877) 233-9389 or email me at mike@mikeshovan.com.
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