Will Bankruptcy Affect My Credit?
Posted on Sep 29, 2014 4:46pm PDT
If you are thinking about filing for
Chapter 7 or
Chapter 13 bankruptcy, you may be worried about how it will affect your credit score.
What's important to understand is that, although the bankruptcy will
remain on your credit report for several years after you have filed, it
is still possible to rebuild your score after the fact. Most people mistakenly
assume that they won't be able to obtain a new line of credit once
they have filed, but this is far from the truth. In fact, you may be surprised
at how quickly you will begin to receive credit card offers in the mail
(not that you should necessarily accept them).
When you are struggling with debt, your credit score will inevitably suffer.
By the time you have made the decision to file for bankruptcy, your score
has probably already taken a substantial hit. For this reason, when you
take the initiative to discharge all unsecured debts through Chapter 7
bankruptcy or repay your creditors through Chapter 13, all of this negative
reporting on your credit score will also cease. You can expect the bankruptcy
to have an impact on your score, but you will also be in a much better
place to start rebuilding once you are no longer buried in outstanding debts.
By taking a smart approach to
rebuilding your credit (i.e. obtaining a secured credit card and paying all of your bills on
time), you can expect your score to recover steadily. It may not happen
overnight, since it will take persistence, but this should not be only
the reason why you decide not to file for bankruptcy. To find out if bankruptcy
is right for you, we encourage you to discuss the specific nature of your
debt with a Cobb County bankruptcy attorney from our firm. At The Purcell
Law Firm, P.C., we have seen it all, so you can trust that we will be
able to shed light on your financial situation.
Connect with our firm today to schedule your free and confidential