For more than 25 years, Foley Freeman has helped southern Idaho consumers and businesses take advantage of protections afforded under bankruptcy law. Bankruptcy offers many debtors the fresh start they need to achieve financial stability, but to actually enjoy full financial opportunity, it is necessary to rebuild credit once the bankruptcy process is complete.

Overview of Bankruptcy

Bankruptcy is a legal process designed to help individuals, families, and businesses in Idaho and across the country achieve a fresh financial start when overwhelmed by debt. Governed by the United States Bankruptcy Code, bankruptcy law provides a structured way for debtors to seek relief from debts they cannot repay, while ensuring creditors are treated fairly. The bankruptcy process is overseen by the bankruptcy court, and involves a series of steps that must be carefully followed to protect your interests and assets.

Working with experienced Idaho bankruptcy attorneys is essential to navigating the complexities of filing bankruptcy. Whether you are an individual, a family, or a business owner in Boise, ID, a knowledgeable attorney can help you understand your options, guide you through the bankruptcy code, and represent your best interests throughout your bankruptcy case. The goal is to help clients pay creditors as required by law, while maximizing the relief available under Idaho bankruptcy statutes. With the right legal guidance, bankruptcy can be the first step toward regaining control of your finances and building a more secure future.

Types of Bankruptcy

There are several types of bankruptcy available under the bankruptcy code, each designed to address different financial situations. The most common type is Chapter 7 bankruptcy, which allows individuals and businesses to liquidate non-exempt assets in order to pay creditors and discharge most unsecured debts. This process provides a true fresh start for many clients, as it eliminates overwhelming debt and stops creditor collection actions.

Chapter 13 bankruptcy, on the other hand, is ideal for those who have a regular income and want to keep their assets. It involves creating a court-approved repayment plan that allows debtors to pay creditors over a period of three to five years. This option is often used by families and individuals who want to avoid foreclosure or catch up on missed payments.

For businesses seeking to continue operations while restructuring their debts, Chapter 11 bankruptcy offers a path to debt reorganization and long-term financial stability. Choosing the right type of bankruptcy depends on your unique circumstances, assets, and goals. A Boise bankruptcy attorney can provide the legal knowledge and personalized advice you need to make the best decision for your financial future.

REBUILDING CREDIT with a Bankruptcy Attorney

An important part of rebuilding credit after bankruptcy is gaining an awareness of how credit bureaus collect and report debt. The three major credit bureaus, Experian, Equifax, and TransUnion, create credit reports by obtaining credit data from creditors and public records. The reports are then sold to individuals and organizations that have an interest in a person’s creditworthiness, including lenders, insurance companies, landlords, and employers.

Financial hardships such as divorce or facing foreclosure often lead individuals to seek bankruptcy protection and later focus on rebuilding credit. Clients who have experienced wage garnishment, unpaid taxes, or child support obligations may need special strategies for rebuilding credit, as some debts—like certain taxes and child support—are not dischargeable in bankruptcy.

At the conclusion of bankruptcy proceedings, consumers and businesses must begin rebuilding their credit as soon as possible. Ways to reestablish credit include:

  • Open a secured credit card with a bank or credit union. With a secured credit card, the cardholder gives some money for the lending institution to hold, and the credit limit on the card equals that amount. For a secured credit card to boost your credit score, the lending institution must report the card to the three major credit bureaus.
  • Work toward opening unsecured credit cards. With an unsecured credit card, the lending institution does not require the cardholder to give any money up front to open the card. To rebuild credit, it is important to regularly use the card and pay the balance off in full each month.
  • Make debt payments on time. Once new credit cards or loans are established, payments must be made on time, with no exceptions. Otherwise, credit will be negatively affected once again. Timely payments are especially important for ongoing obligations like taxes and child support.
  • Avoid excess or unnecessary credit inquiries. Creditors make inquiries with one or more of the three major credit bureaus with each credit card or loan application. These inquiries, especially if there are many of them, can reduce a person’s credit score. Thus, do not apply for credit cards or loans that are unlikely to be approved.

After a Chapter 7 liquidation, clients may need to rebuild credit from scratch, as most unsecured debts are discharged.

At Foley Freeman, we understand that making a new start after bankruptcy can be intimidating for clients, but with diligence and care, a better financial future is possible. Our bankruptcy attorneys are problem solvers who tailor credit rebuilding strategies to each client’s situation and will help ensure that you have the tools to start rebuilding your credit.

Client Reviews and Testimonials

Our clients’ experiences speak volumes about the quality of our legal services and our commitment to helping families and businesses in Boise and the surrounding area. Many clients have shared how our team of experienced bankruptcy attorneys guided them through the bankruptcy process with compassion, professionalism, and a focus on their best interests. From stopping wage garnishments to helping clients achieve a fresh start, our Boise bankruptcy lawyers are proud to have made a positive difference in the lives of those we serve. We invite you to read our client reviews and testimonials to learn more about how we have helped others overcome financial challenges and build a brighter future.

Talk to an Experienced Treasure Valley Lawyer about Bankruptcy & Rebuilding Credit

If you are facing financial difficulties and mounting debt, bankruptcy may help restore you to positive financial health. For more information about the bankruptcy process and rebuilding credit, please contact Foley Freeman to schedule a consultation.