Some people, such as people in the credit card industry, don’t want people to know the truth about bankruptcy (because if your bills are discharged, they won’t get paid!).
For this reason, there are misconceptions about bankruptcy — especially when it comes to credit scores after filing. To learn how your credit may be affected, talk to a lawyer.Speak to a Bankruptcy Lawyer Today
The truth: Bankruptcy DOES NOT have to hurt credit scores.
It’s true that a bankruptcy filing will stay on your credit report for up to 10 years (typically 7 years if you file under Chapter 7 bankruptcy), but it doesn’t necessarily mean your credit will be in the dumps during that time.
It will probably be tougher to get loans or low-interest credit cards right after filing bankruptcy, but if you are seeking bankruptcy relief, your credit may not be so great to begin with.
As you keep on top of monthly payments for your rent, mortgage and utility bills, you’ll be strengthening your credit report.
If you do your research you should be able to find a starter credit card that will help you jump start your good credit history again.
This card will probably have a higher interest rate, but the point is to charge items that you normally would have bought with cash and pay it off each month (or at least pay more than the minimum monthly payment).
By using credit wisely, you’ll be proving to the credit reporting agencies that you’re a responsible credit user. If you keep those habits up, you’ll likely see your credit score rise in 1-2 years after filing.
Your credit score probably wasn’t the best it could be before you filed bankruptcy, and it will take time to boost it up, but it can be done if you stay dedicated to responsible spending.
For all the negative publicity bankruptcy can get from credit card companies there is little talk about the positive side of bankruptcy.
Millions of people have filed for bankruptcy protection.
Personal bankruptcy was designed to:
Many people have been able to eliminate their bills by filing Chapter 7 bankruptcy and others have been able to stop foreclosure and save their homes by filing Chapter 13.
Now that you know more about bankruptcy and credit, you probably want to learn more about the bankruptcy process.
A local bankruptcy attorney can inform you of the bankruptcy laws that may help you eliminate debt. Connect with an attorney today.
PAID ATTORNEY ADVERTISEMENT: THIS WEB SITE IS A GROUP ADVERTISEMENT AND THE PARTICIPATING ATTORNEYS ARE INCLUDED BECAUSE THEY PAY AN ADVERTISING FEE. It is not a lawyer referral service or prepaid legal services plan. Total Bankruptcy is not a law firm. Your request for contact will be forwarded to the local lawyer who has paid to advertise in the ZIP code you provide. Total Bankruptcy does not endorse or recommend any lawyer or law firm who participates in the network nor does it analyze a person's legal situation when determining which participating lawyers receive a person's inquiry. It does not make any representation and has not made any judgment as to the qualifications, expertise or credentials of any participating lawyer. No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers. The information contained herein is not legal advice. Any information you submit to Total Bankruptcy does not create an attorney-client relationship and may not be protected by attorney-client privilege. Do not use the form to submit confidential, time-sensitive, or privileged information. All photos are of models and do not depict clients. All case evaluations are performed by participating attorneys. An attorney responsible for the content of this Site is Kevin W. Chern, Esq., licensed in Illinois with offices at 25 East Washington, Suite 400, Chicago, Illinois 60602. To see the attorney in your area who is responsible for this advertisement, please click here, or call 866-200-8052.
FLORIDA ONLY: Total Bankruptcy is considered a lawyer referral service in the state of Florida under the Florida Rules of Professional Conduct. By all other standards, Total Bankruptcy is a group advertisement and not a lawyer referral service.
If you live in Mississippi, Missouri, New York or Wyoming, please click here for additional information.
By an Act of Congress and the President of the United States, we are a federal Debt Relief Agency. Attorneys and/or law firms promoted through this Web site are also federally designated Debt Relief Agencies. They help people file for relief under the U.S. Bankruptcy Code. Disclosures Required Under the U.S. Bankruptcy Code.