Helping our clients rebuild their lives after turbulent financial struggles is one of Stone Law Group’s core values – we see it as part of our duty of care we owe our clients. For us, this includes taking care of our clients throughout the entire legal process, whatever that may be. With bankruptcy, we pride ourselves on looking after our clients before, during and after the course of filing. We won’t just navigate you through the legalese of bankruptcy and what it means for you, we will help you rebuild your life by providing you with the tools and know-how to really make a difference with your everyday finances.
A common misconception is that bankruptcy will tank your credit scores, and you will never be able to buy your dream vehicle or dream home. However, this is simply not the case. While it’s true that filing for bankruptcy will result in a significant drop in your current credit score, it gives you the opportunity to start from scratch, and rebuild. No, it won’t happen overnight and will require patience and diligence – but the great news about rebuilding is that the only way to go is up.
Stone Law Group offers its clients the tools to rebuild their future. After your bankruptcy is discharged, you will be enrolled into our 720 Credit Score program, which offers weekly bite-sized seminars and resources to give you the tools you need to get your credit score back up to where it belongs. At a $1,000 value, we offer this program to our clients free-of-charge.
The following tips are snippets of what this program could offer you, whatever your situation.
- Open new lines of credit
For a lot of our clients, this feels counter-intuitive. After all, you’ve put a lot of time and energy into filing for bankruptcy, so why would your first step after bankruptcy involve opening new lines of credit, potentially opening a whole can of worms? Well, contrary to popular belief, being a cash-only citizen in America is virtually impossible nowadays. It may not feel like it now, but in the future you may want to take out a loan for a house or car, or even for unforeseen circumstances (after all, life happens) and you will want a decent credit score in order to obtain the best possible interest rates.
Opening a secured credit card is often the best option for people who have recently received their bankruptcy discharge. A secured credit card will link to your savings account, and usually the limit is a percentage of the account balance. This can be a good way to ensure that your finances stay within your control, as well as reconstructing your credit profile and making you look good to the credit bureaus.
- Pay all bills in a timely fashion
This cannot be emphasized enough. Paying your bills and loans on time every month is the most effective way to ensure that your credit score will start to increase. Yes, the credit bureaus will place some weight on the fact that bankruptcy appears on your credit report – but they place more emphasis on recent behaviors. Bankruptcy gives your score a sudden, drastic hit, but once your bankruptcy is behind you, you truly can start working towards a brighter financial future knowing that any positive action you take now will be building on a clean slate.
Let’s use Amanda as an example. She filed for a Chapter 7 bankruptcy a few years ago in the midst of an unpleasant separation from her husband. Her wages were being garnished and she was struggling to take care of her children and was in the red at the end of every month. With the help of Stone Law Group, Amanda was able to breathe again after she received her discharge. She could put gas in her car without worrying whether her card would be declined; she could treat her children to an ice-cream without feeling guilty. Amanda’s credit score had suffered a hit of 100 points when she filed for bankruptcy. However, within 14 months after her discharge she was back up to a 720 credit score. She was so impressed, she was even recommending the 720 Credit Score program to friends and family as a way for them to manage their credit better.
It is a common misconception that you have to wait seven to ten years for your credit score to climb back up again – the same length of time it will take for accounts in collections, foreclosures, or bankruptcies to fall off your credit report, but that just isn’t true. With patience and discipline, you too could find yourself reaping the benefits of a 720 credit score, just like Amanda and numerous others. Call our office today at (602) 264-0500 for more information, and find out whether we can help you with your debt and put you on the road to financial recovery.