One of the most frequent questions I receive from clients involves a fear that bankruptcy will hurt their credit. While it is no secret that a bankruptcy filing will show up on your credit report, that does not always mean that it will have a negative effect on your credit score. Typically, a bankruptcy filing will remain on your credit report for a period of 7 to 10 years. However, this does not prevent an individual from responsibly financing a vehicle, getting approved for a credit card, or even working towards buying a house.

On most occasions, people in need of debt relief are in danger of foreclosure or repossession, have a judgment or garnishment against them, are past due on a large number of bills, or any combination of financial problems. In other words, many people that are in desperate need of debt relief already have problems with their credit score. Also, they are completely unable to get rid of their creditors and dig their way out of the debt they are in. Being strapped with that unshakeable debt prevents many people from increasing their credit score to begin with. This is where a chapter 7 bankruptcy or a chapter 13 personal reorganization can be the difference maker.

Whether it is under Chapter 7 or Chapter 13, the filing will immediately stop any creditors from contacting you. It will also allow you to work towards getting your credit back on track which is sometimes unattainable without seeking debt relief. Once you receive your discharge, you can start responsibly building your credit without having to worry about creditors from your past. What many people don’t realize is debt relief does not preclude them from incurring new debt post-discharge. What it does do is allow you to get your finances under control and start over.

Every person’s financial situation is different and must be analyzed carefully. The good news is our professional and experienced attorneys are here to help guide you through this process.  If you need financial help, please contact our office location nearest to you to set up a free private and confidential consultation visit with one of our licensed attorneys.

Joshua Lawhorn
Written by Joshua Lawhorn

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