Does Bankruptcy Ruin One's Credit Rating?
There is life after bankruptcy. One of the common myths is that no bank or credit card company will be willing to extend credit to you after you declare bankruptcy. In reality, your credit score will bounce back surprisingly soon. Most people who file bankruptcy will qualify for charge cards and loans within a year or two, and often sooner.
If you are deep in debt and the creditors are closing in, get the facts about bankruptcy, the impact on your credit and other concerns. Based in Southaven, I am an experienced bankruptcy lawyer representing individuals and couples in both Mississippi and Tennessee in Chapter 7 and Chapter 13 filings.
Bankruptcy does not destroy your credit rating. It actually helps it. Call my suburban Memphis office at 662-298-4597 or 888-549-3902 for a free initial consultation.
Southaven Personal Credit and Bankruptcy Attorney
If you have skipped payments, paid bills late or allowed debts to be turned over to a collection agent, you probably have a poor credit score. When you file for bankruptcy, your score will initially dip even further.
However, because your debt-to-income ratio improves when you discharge debts in bankruptcy, you suddenly become "creditworthy" again. Your credit rating will improve much more quickly than if you do nothing and continue to drown in debt.
If you take the right steps after bankruptcy such as living within your means and paying bills on time:
- You will likely get credit card offers within weeks or months after filing bankruptcy. At first, the credit limits will be low and the interest rates will be high, but these improve over time.
- Most people qualify for auto loans within a year or so and mortgage loans within two years or so. Again, the terms should get more favorable as time goes on and you prove you are a good credit risk.
Individual results will vary with income, credit history and other factors. But filing for bankruptcy will not make you a leper. It should actually improve your standing with lenders and credit card companies, and in the long run you can rebuild good credit.
Take the Steps to Restoring Credit Through Bankruptcy
Bankruptcy may or may not be the answer for your situation. I can provide a detailed and knowledgeable analysis to make that decision, and I can answer all your questions. Contact my Southaven office to schedule your free initial consultation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
