Tag Archives: credit

Your Credit Rating after a Negative Event

Credit Report Search

Bankruptcy Attorney serving Cocoa Beach, Florida

One of the main concerns people have when they are facing bankruptcy or another negative financial event is whether or not they will ever be able to own a home again. You may have heard that it is not possible to buy a home after you have experienced an adverse financial event, such as a foreclosure or bankruptcy, but this typically is not true. Before you give up hope consider the following:

  • It takes time. You may not be eligible to qualify for a mortgage immediately, but give it time. For example, if you completed a Chapter 13 bankruptcy and you have good credit afterward, you may be able to get a home loan after one year. However, after a foreclosure, you will need to wait seven years before you qualify for a conventional loan that can be sold to Fannie Mae or Freddie Mac. There are also several time frames between these two. The point is, don’t assume that filing for bankruptcy will prevent you from every owning a home again. It will take time and hard work, but you might be surprised at how quickly you can qualify for a mortgage again.
  • Work on your credit score. After a bankruptcy, foreclosure or short sale, it is important that you work on improving your credit score. This means making payments on time and showing financial responsibility. Additionally, you should review your credit report on a regular basis to ensure it is correct. If you discover any errors, you should immediately have them corrected.
  • Plan ahead. It is essential to understand what the consequences are of filing for bankruptcy protection or foreclosure or short sale of your home. A seasoned attorney can help you understand what to expect and to assist you in obtaining the necessary financing when you are ready to buy a new home.

If you have questions regarding how a foreclosure, bankruptcy or short sale will impact your ability to buy a new home in the future, contact Faro & Crowder today.

Don’t delay any longer. Call us today to schedule your initial consultation. Our office is located in Melbourne, but we proudly serve individuals and businesses across the State of Florida.

Marriage or Bankruptcy – Which Should Come First?

If you are drowning in debt and planning to get married soon, you should not only discuss your finances with your fiancé, but also with one of our experienced lawyers. We can help you determine the best timing for the filing of your bankruptcy and your marriage.

Bky or Marriage pic

When you file a Chapter 7 or Chapter 13 case, you can discharge or eliminate the majority (if not all) of your debt. This includes credit card bills, medical debt, and a wide variety of other types of debt. Thus, filing a case before you get married can help you start your life together with a fresh financial start. It is important to understand that if your credit score is already low due to your delinquent accounts, filing for bankruptcy will probably not have a significant impact on your score.

After you have completed your bankruptcy case and discharged your debt, you can immediately start working to rebuild your credit score. Many of our clients are surprised to learn that with time and hard work, they are able to improve their credit score quicker than they expected.

If you don’t want to enter your marriage with the burden of your debt on your shoulders, contact us to discuss how a Chapter 7 or Chapter 13 can help you. We understand that planning for your wedding day is important, but let us assist you with planning for your financial future and get your marriage off to a solid start!

Contact a Brevard County Bankruptcy Attorney at Faro & Crowder, PA

If you are interested in learning more about how a bankruptcy filing will impact your debt, contact Faro Crowder, PA to schedule an appointment. We are located in Melbourne, Florida on Sarno Road and serve residents and businesses of the Space Coast and Brevard County.

Services Areas

We provide services throughout Central Florida including: Melbourne, Titusville, Palm Bay, Merritt Island, Cocoa, Cocoa Beach, Satellite Beach, West Melbourne, Cape Canaveral, Viera and Eau Gallie.

Get In Touch with Faro & Crowder, PA

Faro & Crowder, PA
Phone: 321-784-8158
1801 N. Sarno Road, Suite 01
Melbourne, FL 32935
Email: info@farolaw.com

The information on this blog or any blog is not intended as, and should not be taken as, legal advice.

Post-Bankruptcy Credit: Tips on How to Increase Your Score

Melbourne and Brevard County Bankruptcy Attorneys

One of the primary concerns people have when they file a Chapter 7 or Chapter 13 is how their filing will affect their credit score. The truth, however, is that in most cases your credit score is already damaged by past due payments and defaulted loans. Thus, when you file for bankruptcy, the negative impact is minimal. This is especially true in comparison to the benefit of eliminating the majority of your debt and obtaining a fresh financial start. Also, when your bankruptcy case is completed, you can start improving your credit score. Below are a few tips:

  • Credit report. After you receive your discharge order, you should request a free copy of your credit report to verify that the debts are properly noted as being discharged. If you discover errors on your credit report, you should immediately dispute them with the report agency. You cannot improve your credit score until you ensure that your report is accurate.
  • Credit cards. It may seem counter-intuitive to obtain a credit card after emerging from bankruptcy, but you have to have credit in order to rebuild your credit score. It is important that you are responsible with your new credit accounts and only open a select few. You must pay your bills on time and, if you are unable to do so, do not use your cards. Your credit score can be improved by having open accounts, even if you are not using them. Lastly, not all credit cards are treated the same when it comes to credit reporting. The major cards (such as Visa or MasterCard) provide more benefits than department store cards.
  • Secured credit cards. It may be difficult to qualify for traditional credit cards when you first emerge from bankruptcy. If this is the case for you, consider obtaining a secured credit card. This type of card requires you to make a deposit with the cardholder, which is typically 100% to 200% of the total amount of the line of credit extended to you. As long as you timely make your credit card payments, the deposited money will not be touched by your lender.

There are several other ways you can rebuild your credit post-bankruptcy, but the most important thing is to learn from your past mistakes and be financially responsible. With patience and hard work, you will see your efforts payoff with your credit score.

Contact Faro & Crowder, PA for your free initial Bankruptcy consultation

If you have questions regarding filing a personal bankruptcy or other ways we can help you, contact us for a free consultation.

Contact Us For A Free Consultation