How Will Bankruptcy Affect My Credit?
It is important to understand that filing bankruptcy allows you to make a fresh start financially — this includes your credit score. While a bankruptcy filing does cause a one-time reduction in your credit score, it will also stop your score from decreasing further due to nonpayment of your past-due debts (which will be cleared up through the bankruptcy filing).
Getting A Loan After Bankruptcy
Right after filing, it may be impossible to get a loan with a good interest rate. This may be due to the bankruptcy filing as well as your history of late payments and loan defaults. However, as time goes on, your ability to get a good loan after bankruptcy will improve, as long as you have a steady source of income and pay your bills on time.
The more time that has passed, the less weight your bankruptcy filing will carry with creditors. As you make payments on time, you will increase your credit score and begin building a positive payment history.
At Christopher Kerney, Attorney at Law we help individuals and families in Gallatin, Portland, Hendersonville, Lebanon and the surrounding area. Let us evaluate your financial situation and answer your questions about rebuilding credit after bankruptcy. Your first consultation with a lawyer is free with no obligation. Call or contact us online today.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.