Tap to Call - (877) 250-8242

Does Filing Bankruptcy Ruin Credit?

Yes, filing bankruptcy will affect your credit score. But then again, so does just about everything else, including when you pay your bills, how much credit you use, how many credit cards you have, and how long ago all of this happened.

Plus, if you're considering bankruptcy, your credit may already be in trouble. In fact, filing bankruptcy may actually make it easier for you to protect your credit by wiping out debts and giving you a fresh restart. With old debts gone, you can start focusing on good credit habits going forward.

That said, your credit history is unique to you. How filing bankruptcy will affect this - and affect your plans for the future - will depend on many factors. Don't let credit fear keep you from clearing your debt and making a positive change in your life. Get answers about how bankruptcy laws may apply to you by speaking with a local bankruptcy attorney.

Transcript on Bankruptcy and Credit Scores

WOMAN CONCERNED ABOUT CREDIT: Sure, these babies have gotten me into big time debt. But bankruptcy? I am not filing bankruptcy and ruining my credit record.

OMG, that would be so embarrassing.

No, I"ll just continue to live beyond my means. At least no one will know about that.

KEVIN CHERN, BANKRUPTCY ATTORNEY: Before filing bankruptcy you look like someone
who has a lot of outstanding debt, who can't afford to pay their bills and could turnaround and
file bankruptcy at any moment.

After filing bankruptcy you have no outstanding debt. You can't file bankruptcy for another eight years. And, for the first time in a while, you have expendable income that you can default towards making payments on debts.

Now you look like a much better risk to a potential creditor, a potential lender than you do before filing bankruptcy.

In fact, recent studies indicate that over ninety percent of debtors coming out of bankruptcy report having received a solicitation from a lender actually indicating that they knew that they had filed bankruptcy.

So remember: Credit is your ability to borrow money and
that may actually improved after you file bankruptcy.

WOMAN CONCERNED ABOUT CREDIT: For serious? Maybe bankruptcy isn't so bad after all. I'm going to TotalBankruptcy.com to learn more.


Tap to Call - (877) 250-8242

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.