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Life After Bankruptcy: Better than you think

Life after bankruptcy should be one of comfort and peace.  Think about the stress that your debts have caused you during the last few months or years of your life, now imagine those debts have vanished and you can focus on your future with a clean slate.  Being debt free is a liberating feeling and will allow you to rebuild your financial health.

The Effect of Bankruptcy on Your Credit:

Not Bad!

Many people get hung up on a piece of paper or computer entry called a credit score.  However, one must not lose sight of the big picture, which is your net worth is more important than your credit score.  Although a bankruptcy can stay on your credit report for up to ten years, this does not mean that your credit will be ruined for ten years. In truth the effect of a bankruptcy on your credit is unpredictable and depends on a wide variety of factors.

For most people your credit score shoud not be a factor in deciding to file a bankruptcy.  If you are seriously delinquent on a number of debts your credit score will already be low.  A bankruptcy is unlikely to make things worse.

In fact, there is evidence that the filing of a bankruptcy may actually help you grow your credit score.  You are actually one of the safest credit risks around.  Your debt to income ratio is now almost perfect as you will have discharged most, if not all, of your debts.  Moreover, creditors will know that you cannot file bankrtupcy again for a significant period of time.

Although a bankruptcy will affect your ability to get a conventional mortgageg for a period of 2-4 years, most lenders will not hold a bankrtuptcy against you after that.  In short, with proper planning you will be able to obtain a mortgage even after you file bankruptcy.

Your ability to buy big ticket items such as a car or obtain revolving credit, such as credit cards, may suffer in the short term after filing a bankruptcy but shouldn't hurt you in the long run. The filing of a bankruptcy has a temporary affect that can be minimized with proper planning and a solid rebuilding strategy.  We find that many people are able to purchase a vehicle almost immediately after filing bankruptcy although it does take a bit more leg work.  The same time table often applies to credit card offers with some debtors receiving offers of credit within weeks after receiving their discharge.  We can provide you with a specific credit rebuilding program designed to fit your individual needs.

In fact, we find that we are more concerned with our clients receiving easy credit shortly after bankruptcy and falling back in to debt than we are about people not being able to get credit.

Our bankruptcy attorney will help you plan your financial future every step of the way and in doing so we help you get a head start on the road to recovery.


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