One common question that I often hear from my clients is whether or not Bankruptcy will effect their credit score. This is a tricky question with no clear answer.

It is very likely that your credit has already been significantly hit if you are behind on your bills. If that is the case, Bankruptcy will likely not make it any worse. If you currently have decent credit, it may effect it. Even so, since Bankruptcy wipes out your old debts, it may help you pay your new debts and obtain new credit. Keeping current on your new debts (including your ongoing monthly bills and car/house payments) can help build back up your credit score.

Yes, Bankruptcy can continue to appear on your credit report for ten years for Chapter 7 cases and seven years for Chapter 13s. Even though the Bankruptcy may continue to report, without having multiple credit cards, and collection companies harassing you for payment, you will more likely be able to keep current on your ongoing debts such as mortgages and car payments. Keeping current on your ongoing debts will help build back up your credit score.

Additionally, you may be able to obtain new debts such as car loans and mortgages during your Bankruptcy or within a few years after your case has closed. Filing Bankruptcy does not mean things are at an end. Instead, Bankruptcy can give you a fresh start. Bankruptcy can help you to more easily make ends meet each month by discharging your old debt allowing you the ability to focus on those reoccurring bills and maybe even future savings.

Consultations are FREE, and we also offer affordable payment plans.

Contact us today to discuss your case!