What Will Happen to My Credit After Filing Bankruptcy?
Filing for bankruptcy is not a decision that is usually taken lightly or alone. Debtors should talk to their family and friends and most importantly speak to a a qualified bankruptcy attorney that can advise on the ramifications of your bankruptcy filing. It is one of the most popular questions that debtors ask and one that debtors don’t fully understand prior to meeting with a bankruptcy attorney. Debtors want to know how filing bankruptcy will affect them long term. When a debtor files for bankruptcy, the bankruptcy is reported to the credit agencies and will remain on credit reports for 10 years in the case of a chapter 7 bankruptcy. With that said, it can affect a debtors credit score and for many people it could result in a higher credit score. How can this be? The answer is simple, debtors can now start fresh and pay back any new debts that you will incur while also removing all of your prior bad debts from your credit report and replacing those with one bad mark on your credit. That seems like a good trade off to me.
For debtors who hope to purchase a home or a new car at some point in the near future should not fret about filing bankruptcy in most circumstances. Debtors who wish to purchase a home can usually do so within 2-4 years of filing their bankruptcy case and building their credit. In terms of buying a car soon after bankruptcy, you will also be able to accomplish this. Lenders know you can’t file bankruptcy again for 8 years after a chapter 7 bankruptcy. Therefore you make for a good client because they know you will have to be liable for the debt. This means that you may have to buy a car at a higher interest rate, but rest assured, it can be done.
If you have additional questions regarding how a bankruptcy filing can affect your credit, schedule a free consultation with Symmes Law Group today by calling 206-682-7975