Credit after a Bankruptcy Filing

One of the most commonly asked questions for a bankruptcy attorney is, “When will I be able to get credit after filing bankruptcy?” The short answer is, “Soon.”

It is true that filing bankruptcy will put a big scarlet “B” on your credit report. After a bankruptcy filing, the credit reporting agencies will show the bankruptcy for seven years on a Chapter 13 bankruptcy and for 10 years with Chapter 7 bankruptcy. Even though this shows up on your credit report, it doesn’t mean that creditors will not be willing to give you credit. Debt collectors usually tell an individual prior to filing bankruptcy that their credit will be destroyed and they will never get credit again. This is an outright lie as much of one’s credit score is heavily based on debt ratios. Prior to filing bankruptcy most individual’s credit cards are completely tapped out with a bunch of late pays. At this time, the only place for their credit to go is up.

Filing for bankruptcy may be the most responsible way to alleviate financial debt without losing everything you own. If you’re interested in seeing if bankruptcy will work for you, take a moment and fill out the form below to speak with the local bankruptcy attorney for a FREE NO OBLIGATION CONSULTATION.

Creditors want the debtor to believe that filing bankruptcy will destroy their life. What creditors don’t want you to know is that many creditors are willing to take a chance on individuals shortly after the bankruptcy discharge. It doesn’t take a rocket scientist to figure out that an individual after filing bankruptcy will be debt free or close to it and as long as they are employed, they look like a pretty good risk. So when they tell you the negatives of a bankruptcy filing, they are just trying to get you to pay them more money on the account.

The United States is a capitalist society and in order for it to work, companies need to make a profit. This includes the credit industry who are very opportunistic. In fact, their recklessness and giving out credit prior to 2008 is what caused the financial meltdown and the current financial problems we are facing now.