A popular myth is that filing for bankruptcy can hurt your credit more than help it. Many people considering filing bankruptcy are worried about how filing bankruptcy will affect their credit score. The truth is a bankruptcy may stay on a credit report for up to 10 years, however credit can start being re-built immediately, a new car can be purchased and a home can be purchased in about 2 years after filing for chapter 7 bankruptcy and immediately after completing a chapter 13 bankruptcy plan. Additionally for some people, filing a bankruptcy might actually help their credit score if they have a low score already as creditors know that debtors filing chapter 7 bankruptcy cannot file again for 8 years if they received a discharge of their unsecured debt the first time around.
Indeed many people have told me that immediately after filing for bankruptcy that they receive offers for new credit cards in which consumers can use to rebuild credit. if you use the cards and then pay them off every month this helps to establish new credit moving forward. You can also attempt to clean up your credit by disputing and making credit bureaus and creditors alike validate what appears on your credit report. If a credit bureau cannot validate the information appearing on your credit report, then it must be removed per the Fair Credit Reporting Act (FCRA). Removing erroneous items from a credit report can boost a credit score within a few months. This can come be incredibly handy if you intend to purchase a home in the future or wish to qualify for low interest credit cards or obtain any sort of credit. There are many companies out there that may offer this service but it is best to go with a company that you trust or has an attorney on staff. Companies owned by an attorney are regulated by the state bar so you will know that you are dealing with a respected and legitimate business.
If you have additional questions please call Symmes law group at 206-682-7975