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How Will Bankruptcy Affect My Credit?

An individual’s ability and willingness to meet his or her financial obligations determines creditworthiness. All creditors use different criteria and having a bankruptcy on your credit report is usually only one factor used in deciding your creditworthiness. So there really is no definitive answer as to how bankruptcy will affect your credit because every creditor has unique methods of analyzing different aspects of a consumer’s file and every person’s financial situation is different.

But, a bankruptcy often put people in a better position to pay future bills and that can result in improving your credit score. Bankruptcy wipes out your old debts, resulting in zero balances on your credit report. And after you file for bankruptcy, you are prevented from filing a subsequent bankruptcy for a number of years. Seeing that they are protected from another bankruptcy for an extended period of time, some creditors will regularly issue new credit to individuals who recently finished a bankruptcy case. You can likely get credit even before your bankruptcy matter is completed. The real issue will probably be what interest rates and fees you will have to pay and whether you can manage the monthly payments to avoid beginning a new cycle of painful financial problems.

Regarding your credit score specifically, it is also important to keep in mind that your score might already be quite low if you are behind on your bills. In many instances, bankruptcy does not lower a score by much, if at all, because a bankruptcy’s potential harm to your score can be outweighed by the tremendous positive effect wiping out both debt and numerous delinquent accounts can have. There are many scenarios in which filing for bankruptcy actually can raise your credit score. One of the software programs we use can help predict what your score will be after you receive a discharge and we regularly see increases in scores after bankruptcy.

Beyond that, bankruptcy will stay on your credit report for ten years from the date it was filed. Regardless of your credit score, it is important to keep in mind the tremendous benefit to your and your family’s emotional and financial well-being that comes from seeking relief from the United States Bankruptcy Code.

After your case, discharged debts should be listed on your credit report as having a zero balance, signifying that you don’t owe anything on that debt. It can adversely affect your credit score and make it harder to get loans if a discharged debt is incorrectly reported as still having a balance owed. So it is a good idea to review your credit report after your bankruptcy is completed and we’ll give you all the tools you’ll need to follow up to get free credit reports. Also, if we find a discharged debt that reappears, also known as “zombie debt,” we’ll help you file a lawsuit to fix your credit and can get money for you for a “discharge violation” and fair credit reporting act violation. We have enjoy these types of actions and have been successful suing creditors for all kind of debt collection violations.

If you have questions regarding credit issues or any other matters pertaining to bankruptcy, call us today at (754) 400-5150 or contact us online. Our country’s history is filled with examples of people who have struggled financially but have gone on to become famously wealthy. They all reclaimed their part of the American Dream and we want to help you reclaim yours! Let the lawyers and staff at the Law Offices of Evan M. Rosen serve you!

Under federal law, we are a "debt relief agency." In addition to other legal services, we help people file for bankruptcy relief under the Bankruptcy Code.

Client Reviews
Mr. Rosen was recommended to us by our friends and we highly recommend him for his excellent service. He represented us in the matter of foreclosure defense. His comprehensive and detailed knowledge of Florida law, federal law, and ongoing relevant cases was key to building a robust and winning strategy for our case. He presented us with several options and the risks associated with each, but ultimately, we picked the one that worked best for us. Mr. Rosen and his legal team are highly professional and always easily approachable via phone or e-mail. Once again, highly recommended. Jadwiga M.
In a few words, Evan Rosen saved my house. He got a final judgment in my favor. The judge gave the bank many opportunities (continuance of the trial even a mistrial) to solve all the issues that Evan Rosen will bring up to the judge (issues that were wrong with my case). In the end, his arguments could not be overlooked by the judge and Evan won the judgment in favor of the defendant (me) and an involuntary dismissal of the case. If you want to have the best chances to win your foreclosure case, you need Evan Rosen on your side. He is the Super Lawyer. I have seen him flying out of the courthouse. Oscar D.
I am so grateful first to god and for the blessing of putting attorney Evan Rosen and his team of professional, in our lives. If you are going through a foreclosure and don't know what to do, I can honestly tell you that attorney Evan Rosen is the person to talk (855-55-Rosen) he takes his time to hear your situation and never sugar coats anything and he does not give you false hope. He is an attorney that you can be sure will fight the fight for you. I know nowadays it's hard to find an attorney that you can trust, but know this, you will not regret the day you choose him. Julie D.