Chapter 7 Bankruptcy<\/a> [\/et_pb_text][et_pb_image src=”https:\/\/hamptonroadslawfirm.com\/wp-content\/uploads\/2022\/11\/avvo-rating-final.png” title_text=”avvo-rating-final” _builder_version=”4.19.0″ _module_preset=”default” global_colors_info=”{}”][\/et_pb_image][et_pb_cta title=”We Want To Help You!” button_url=”https:\/\/hamptonroadslawfirm.com\/law-firm-john-w-lee\/” button_text=”View Locations” _builder_version=”4.19.0″ _module_preset=”default” header_font_size=”21px” header_line_height=”1.2em” body_font_size=”16px” body_line_height=”1.4em” background_color=”#0d4a7c” custom_button=”on” button_text_size=”14px” button_text_color=”#0d4a7c” button_bg_color=”#FFFFFF” button_border_width=”0px” button_border_radius=”0px” button_font=”Lato|600||on|||||” custom_padding=”25px|25px|25px|25px|false|false” global_colors_info=”{}”]<\/p>\n Schedule an Appointment at One of Our Two Convenient Hampton Roads Offices Near You!<\/p>\n [\/et_pb_cta][\/et_pb_column][et_pb_column type=”3_4″ specialty_columns=”3″ _builder_version=”4.16″ custom_padding=”|||” global_colors_info=”{}” custom_padding__hover=”|||”][et_pb_row_inner _builder_version=”4.19.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column_inner saved_specialty_column_type=”3_4″ _builder_version=”4.19.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.19.4″ link_font=”||||on|||#0d4a7c|” link_text_color=”#0d4a7c” background_size=”initial” background_position=”top_left” background_repeat=”repeat” global_colors_info=”{}”]<\/p>\n People might believe they can live without establishing favorable credit simply by paying cash for the goods and services they purchase. Buying a home, paying college tuition and buying a car might be possible without being able to borrow money, but having a good credit history and the ability to borrow makes it easier to accomplish these things.\u00a0\u00a0The attorneys at The Law Offices of John W. Lee, P.C.<\/strong><\/em>, understand the importance of establishing good credit, but they also realize that unforeseen financial challenges, such as unemployment or a serious illness or injury, can overwhelm even the most conscientious individual. Our strategy for helping individuals with rebuilding credit and managing debt starts with a review of some of the basic principles about credit.<\/p>\n Credit is the ability to borrow money based upon the borrower\u2019s promise to repay it in the future. Methods for borrowing money include:<\/p>\n Borrowing money and repaying on time helps to establish a positive credit history for the borrower and helps to increase credit score of the individual. A good payment history, high credit score and consistent work history not only helps to persuade lenders to extend credit, but they usually result in the borrower receiving a lower interest rate than someone whose credit reports show late or missed payments.<\/p>\n <\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n [\/et_pb_text][\/et_pb_column_inner][\/et_pb_row_inner][\/et_pb_column][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.19.0″ _module_preset=”default” custom_padding=”0px|||||” global_colors_info=”{}”][et_pb_row _builder_version=”4.19.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.19.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.19.0″ _module_preset=”default” link_font=”||||on|||#0d4a7c|” link_text_color=”#0d4a7c” global_colors_info=”{}”]<\/p>\n Credit reports are usually associated with applications for credit cards or loans, but they can play an even greater role in a person\u2019s life. The reports have traditionally been used by lenders to determine the creditworthiness of borrowers, but they are now being used for other reasons, including:<\/p>\n A credit report showing too much outstanding credit could also be problematic for a person. High balances on credit cards or loans, too many credit cards and too many credit inquiries could be viewed by lenders and others as derogatory. Individuals in this type of situation could improve their credit by reducing credit load or by using consolidation loans to eliminate some of their credit cards.<\/p>\n A credit score is a method lending institutions use to evaluate a person\u2019s risk of defaulting. It is calculated by utilizing the contents of an individual\u2019s credit report. Low credit scores indicate the person is a poor credit risk who is less likely to repay the debt than someone with a higher score.<\/p>\n Some individuals do not have enough information in their credit report to calculate a credit score. For instance, the credit score offered by Fair Isaac Corporation<\/a><\/strong>, commonly referred to as a FICO score, requires that a credit report must contain at least the following information:<\/p>\n FICO scores range from a low of 300 for someone with a very poor credit history to a high of 850 for someone with excellent credit history. The score given to a person depends upon the following five factors:<\/p>\n Individuals recovering from a financial crisis should focus their efforts on rebuilding credit. An effective method for beginning to rebuild credit is by obtaining a personal loan and repaying it without being late or missing any payments.<\/p>\n Practicing good credit card management is another important factor in rebuilding credit. Individuals with multiple credit cards should consider reducing the number of accounts to reduce their credit load. One method of doing this is with consolidation loans for those borrowers who qualify for them. Secured credit cards offered by many banks and credit card companies require a cash deposit from the applicant. By using secured credit cards to make purchases, borrowers can establish a favorable credit history through timely repayments.<\/p>\n Filing a bankruptcy does not remove negative account information from your credit report. After filing bankruptcy, the negative account information will remain on your credit report for up to seven years. Most lenders will be able to see that the negative account information was included in bankruptcy and know that you are not required to pay it back, even though it remains on your credit report. Rebuilding credit normally takes two to four years after filing a bankruptcy. As you properly pay on new credit lines and old credit lines role off the report, your credit score will gradually go up.<\/p>\n Call\u00a0The Law Offices of John W. Lee, P.C.<\/em> <\/strong>at\u00a0(757) 896-0868<\/strong><\/a> to\u00a0schedule a free and confidential initial consultation. Our experienced and knowledgeable attorneys provide credit score tips, credit card management advice and other guidance for rebuilding credit. We also provide advice about the bankruptcy process for those individuals who might be helped by filing a Chapter 7 bankruptcy<\/a><\/strong> or Chapter 13 bankruptcy<\/a><\/strong>.<\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" Managing and Rebuilding Credit
Chapter 13 Bankruptcy<\/a>
Stopping A Foreclosure<\/a>
Protecting Assets<\/a>
Bankruptcy Law FAQ<\/a>
Managing and Rebuilding Credit<\/a>
Required Documents<\/a>
Media Center<\/a>
Bankruptcy Guest Speaking<\/a><\/p>\nMaintaining Good Credit is Critical<\/h2>\n
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<\/p>\nBuilding a Positive Credit History<\/h2>\n
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The Important Role Played by Credit Reports<\/h2>\n
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Credit Score Tips and How to Increase Credit Score<\/h2>\n
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Rebuilding Credit<\/h2>\n
We Are A Hampton Roads Debt Relief Law Firm<\/h2>\n
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