For Many, Filing Bankruptcy is the First Step in Improving Credit
Many people put off filing bankruptcy because they are afraid it will have a devastating effect on their credit. The truth is, if you have serious debt problems, your credit rating will probably go up about 100 points after you file bankruptcy.
At UHLLAW, PC, we offer a free initial attorney consultation to discuss the effect of bankruptcy on your credit rating. We have offices in Worcester, Fitchburg, Boston, Orange and New Bedford in Massachusetts.
How Can Bankruptcy Improve My Credit?
By the time you consider bankruptcy, your credit is probably about as low as it can go. You may have overdue balances on multiple credit cards and other debts that show up on your credit report. By filing Chapter 7 or Chapter 13 bankruptcy, you can obtain a discharge of unsecured debts such as credit card and hospital bills. Except for home or car payments, you will be debt free.
How Soon Will I Be Able to Borrow Money After Filing Bankruptcy?
In most cases, you will be able to obtain credit cards and borrow money the day after you receive your discharge. In a Chapter 7, you will receive your discharge approximately 90 days after your 341 Meeting. In a Chapter 13, you will receive your discharge after your payment plan is completed (three - five years).
Initially, loans may not be on the most favorable terms and your credit card may need to be backed by cash deposits. However, by making regular payments on the debts you owe, your credit will quickly improve.
How Long Will a Bankruptcy Be on My Credit Report?
A bankruptcy filing will remain on your credit report for seven to 10 years. However, bankruptcy does not have the stigma it once had.
While discharged debts may remain on your credit report for a period of time, those debts must be noted as discharged. If a creditor failed to note that a discharged debt has been discharged, contact a lawyer for assistance.
Free Bankruptcy Lawyer Consultation
Come with questions and leave with answers about the effect of bankruptcy on your credit report. Call 888-219-3993 or fill out our contact form to schedule a free initial consultation with a bankruptcy lawyer.
