Bankruptcy Law Firm Memphis, TN
As each attorney from our bankruptcy law firm can attest, one of the things that people who file for bankruptcy worry about is how their credit scores will be affected. In many cases, this concern holds them back from moving forward with the process itself. And although it is true that bankruptcy does impact your credit score, late payments and no payments also have a significant impact on your credit rating, as well.
At Darrell Castle & Associates, our experience is that by the time clients finally reach out to find out how filing for bankruptcy can help them, they are usually in a dire financial situation, with multiple late or missed payments. Many of them have already had charge-off accounts and may even be facing foreclosure, vehicle repossession, or liens. All of these things affect your credit score, lowering it, and making it impossible to obtain loans and other lines of credit.
A bankruptcy filing will show up on your credit report for seven to 10 years. A Chapter 13 bankruptcy will stay on your credit report for seven years and a Chapter 7 bankruptcy will stay in your credit report for 10 years. However, that does not mean your bankruptcy filing will have the same impact on your credit score during this time frame. During this time, as long as you pay your bills on time, the impact of the bankruptcy will lessen over time and you could quickly increase your credit score. Starting with a clean financial state will enable you to not only rebuild your credit, but will also enable you to begin saving for your future, like starting a retirement account.
Following the completion of bankruptcy, a credit score will usually drop anywhere from 150 to 250 points, however, many of the clients we help at our bankruptcy law firm find that they can obtain a vehicle loan shortly after filing bankruptcy, keeping in mind that the interest rates will be higher, based on a low credit score. Our clients have also been able to obtain a mortgage through the Federal Housing Administration (FHA). An FHA loan is specifically for borrowers who have moderate or low incomes and are unable to make a large payment on a home. The loans are issued by lenders who are qualified through the government and are insured by the FHA.
Find Out How Our Memphis, TN Bankruptcy Law Firm Can Help
If you are struggling financially and see no way out, it may be time to sit down with a bankruptcy attorney to find out what legal options you may have. At Darrell Castle & Associates has built a solid reputation as a bankruptcy law firm Memphis, TN clients recommend. We will evaluate your situation and determine if you qualify for bankruptcy and if so, which type would work the best for your circumstance, Chapter 7 or Chapter 13. Although you may consider filing for bankruptcy on your own, it is critical to know that this process can be complicated and making an error can cause the court to dismiss your filing.