Credit score after bankruptcy

Chances are that you spent a great deal of time and energy debating whether or not you should file for bankruptcy.  One of your major concerns would likely be what about my credit score after bankruptcy. No one wants to file for bankruptcy. Many people like yourself have found themselves in this economic storm over the last few years. Working people who made good decisions and worked hard found themselves in an economic tsunami. In the end, you probably felt that you were swimming in debt and that it was just time to move on.
Nevertheless, weighing heavily on your mind was what sort of life you would have after bankruptcy and how would that affect your credit score. If you concluded that your credit history would forever be destroyed after bankruptcy, you’d be wrong. Your credit score after bankruptcy will have a credit blemish, but it doesn’t ruin your credit score forever. In fact, some people already have such low credit scores that after filing bankruptcy, their credit score remains the same or improves. This is because repeatedly missing payments, having a car repossessed, or experiencing a foreclosure all do a great deal of damage to your credit score. Bankruptcy sends a clear signal that you are ready to take matters into your own hands and stop being at the mercy of creditors. After being granted a Chapter 7 or Chapter 13 discharge, you can begin the process of repairing your credit.
Bankruptcy will remain on your credit report for up to ten years. However, within days—and often in the mail with your final discharge from the bankruptcy court—of receiving your discharge, you will begin to receive offers for new credit cards. Why? Because credit card companies understand that you will only be eligible for bankruptcy relief so often. They also understand that for the vast majority of folks who file bankruptcy, it is
a once in a lifetime experience—never to be repeated. They see the opportunity to make money by extending credit to you. If you develop the practice of making timely payments on all of your bills after you file for bankruptcy, you can expect to see your credit score gradually improve over time. It’s a very different experience now than for people who filed years ago. The average recovery time is currently hovering at two years. This translates into credit score recovery to the mid-to-high 700s in that two-year interval.

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The Law Office Of Paul Staley provides legal advice and representation for residents of San Diego County. The information on this website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. This information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.
Paul Staley
Bankruptcy Attorney
1901 1st Ave., FLR 1 San Diego, CA 92101
Phone: +619 235 40 95

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