Bankruptcy has many great benefits, including the ability to discharge credit card debt, medical bills or other forms of debt that you may be unable to pay. Additionally, through a bankruptcy filing, an automatic stay goes into effect, meaning your creditors, including bill collectors, can no longer call and harass you.
However, one of the drawbacks to filing for bankruptcy is that it will have an impact on your credit score. Although this can be an inconvenience, a bankruptcy filing does not stay on your credit report forever and its benefits often outweigh the consequences. A Chapter 7 bankruptcy will stay on your credit report for 10 years, while Chapter 13 bankruptcy will remain for only seven years. For many people, the benefits of waiting these periods out far outweigh the penalties.
If you have questions about how a bankruptcy will influence your credit score, talk to our Lewisville bankruptcy lawyers. We can provide you with answers to specific questions you may have. Some of the tips we offer to people following a bankruptcy to improve their credit include:
- Build a savings account (put away a couple of months’ worth of money so that you can have cash in case an emergency comes up and you cannot obtain a loan)
- Monitor your reports thoroughly and make sure positive information is added such as payments to credit lines
- Consider obtaining a secure credit card (a card that requires cash a collateral deposit)
- Make sure all of your credit lines are paid on time, while avoiding using most of your available credit
Drowning in Debt? Let Our Lewisville Bankruptcy Attorneys Help You
If you are overwhelmed financially, talk to our Lewisville lawyers about the benefits of bankruptcy. We take pride in quickly returning client phone calls and emails. You can reach us by calling (972) 315-6222 or by using the case review form located on this page.
If you are thinking about bankruptcy, you should know that we treat each client with unique care. Learn more about credit repair and life after bankruptcy by visiting our social media pages.
Julian, Crowder & Shuster, P.C. – Lewisville Bankruptcy Attorneys