Florence Attorney B. Grant McNuttOne very common concern or worry if you will I get asked by many of my clients contemplating Bankruptcy is “Will I be able to obtain credit after Bankruptcy?”  They are scared that filing Bankruptcy will prevent them from having any type of credit for the next ten years and in reality nothing could be further from the truth.

This pesky myth has been around for quite some time now.  Most often people are told from well-meaning friends and/or family that if they file for Bankruptcy they will never get credit again.

But as I said above, nothing could be further from the truth as filing for Bankruptcy actually decreases your debt to income ratio which makes it more likely that you will be able to get credit.  Bankruptcy allows an individual to manage a new credit obligation by eliminating burdensome current or old debt.  Most Bankruptcy filers will start to receive credit card offers in the mail as soon as they have received their Bankruptcy discharge order.  Now, I would advise shredding those credit card offers up and throwing the remains in the rubbish bin, but that is a blog for another day.

Filing for Bankruptcy protection, especially in today’s economic climate, is no longer the financial death sentence that it might have been twenty years ago.  Today, people who have filed Chapter 13 Bankruptcy are able to get car loans and refinance mortgages while still in an open Bankruptcy case.  The majority of Chapter 7 Bankruptcy filers will be able to get car loans immediately following their discharge some 3 ½ to 4 months after filing.

Creditors are now looking at post Bankruptcy filers as an invitation to extend credit to previously troubled people given that someone who has just filed is a much safer credit risk than they were pre Bankruptcy.

The Bankruptcy can be a stepping stone to rebuilding credit, but responsible credit use is the key factor to that rebuilding process.  By using credit responsibly after Bankruptcy debtors will soon move on from Bankruptcy and begin their new life with financial freedom.  If you would like to see how Bankruptcy can help jump start your credit repair call an experienced Bankruptcy attorney today and at Bond & Botes, our affiliated offices offer free initial consultations.  Please feel free to call one of our conveniently located offices to set up a private consultation with one of our experienced attorneys.  We will analyze your situation and help you to make the best decision possible to help you eliminate your debt once and for all.


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Grant McNutt
Written by Grant McNutt

Grant McNutt is a Managing Attorney at the Bond & Botes Law Offices in Florence and Haleyville, Alabama. He holds a Bachelor of Science from the University of Alabama, and a Juris Doctorate from the Birmingham School of Law. He has been practicing Consumer Bankruptcy Law since 1999. Read his full bio here.

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