Will Filing for Bankruptcy Permanently Ruin My Credit?

October 20, 2015

 

No, this is a common misconception about bankruptcy. The fact is that, although bankruptcy can have some impacts on people’s credit, these impacts are not permanent.

The Credit Impacts of Bankruptcy

Here’s a look at the credit impacts of bankruptcy & how to start overcoming them. Contact our Colorado Springs bankruptcy lawyers for debt relief help.

Here’s a look at the credit impacts of bankruptcy & how to start overcoming them. Contact our Colorado Springs bankruptcy lawyers for debt relief help.

In general, a bankruptcy case will stay on someone’s credit report for 7 to 10 years following the successful completion of the case. Although this can seem like a long time, it should be noted that:

  • Those who seek debt relief via bankruptcy may have already had poor or damaged credit, particularly if they were not able to make some of their debt payments prior to their bankruptcy case.
  • In general, this can mean that bankruptcy does not necessarily make people’s credit worse than it may have been prior to (or without) the bankruptcy case.
  • There are a number of things that people can do in the months and years immediately following a bankruptcy case to start improving their credit.

How to Rebuild Credit after Bankruptcy

Following a bankruptcy case, some of ways that people can start building their credit back up and maintaining a promising financial outlook include by:

  • Taking out only one or two new lines of credit – You need to use credit to start rebuilding it. For those who have just filed for or wrapped up a bankruptcy case, this can mean having to take out secured lines of credit or lines of credit associated with high interest rates.
  • Charge discreetly and pay on time – In other words, demonstrate a pattern of responsibly using credit. Charge only minimal amounts, and make sure you make all of your payments on time. Within six to 12 months of establishing this pattern, it may be possible to get interest rates lowered, obtain unsecured credit cards, etc.
  • Put yourself on a budget and never charge more than you can afford to pay off in full – In other words, make sure that only ever charge amounts that you can pay off in full each month so that you are not carrying a balance month to month.

Colorado Springs Bankruptcy Lawyers at the Law Office of Jon B. Clarke, P.C.

Are you struggling with debt and ready for a financial fresh start? If so, it’s time to contact the trusted Colorado Springs bankruptcy lawyers at the Law Office of Jon B. Clarke, P.C. Our Colorado Springs bankruptcy attorneys bring more than 35 years of experience to our clients’ cases, making them effective at successfully resolving even the most complex bankruptcy cases on behalf of individuals and businesses alike.

To find out more about your best debt relief options, as well as how we can help you obtain the financial fresh start you need and deserve, contact us today by calling (303) 779-0600 or by emailing us using the contact form on this page. We also encourage you to complete our Business or Consumer Debtor Analysis Form so that we can provide you with professional advice that is as specific and helpful as possible.

From our offices based in Denver and Greenwood Village, we provide people throughout Colorado with the highest quality debt relief legal services.

Categories: Bankruptcy, Impacts of Bankruptcy