A critical component to obtaining a fresh financial start is the rehabilitation of your credit. A typical client comes in with a large amount of unsecured or secured debt. When you file the bankruptcy and obtain a discharge from those obligations, your debt to income ratio obviously improves immediately. It is important in the future to stay current on all of your obligations, especially your homestead in order to begin rebuilding your credit score.
It is counter-intuitive, but often times filing the bankruptcy is the quickest, easiest and cheapest way to rebuild your credit. Take a typical Chapter 7 case for example: Client comes in with lots of credit card debt or other debt they want to discharge. They file the bankruptcy on day one, and receive their discharge somewhere around day 105. Usually, the client would have begun receiving credit card solicitations by the discharge date. The reason is because the debt to income ratio will have improved dramatically, they cannot file another Chapter 7 for 8 years, and if they have income coming in that is an added bonus. In other words, they are no longer a credit risk.