Will credit still be available for you after you file for bankruptcy?
By: Darrell Castle
Hello this is Darrell Castle and I’m an attorney licensed to practice law in the state of Tennessee and I’ve been doing a series of videos on the subject of credit. On this video today, and the last in our series, I’m answering the question, “will I be able to get credit after I file for bankruptcy or if I file for bankruptcy?”
And my answer to that is you will be more credit worthy, in most cases, after bankruptcy than you were before. Why is that? Well I’ll answer that by asking you a question.
What is the one thing you must absolutely have in order to raise your credit score? The answer to that is – make your payments on time.
That is very hard to do when you have a lot of debt that you can’t afford. You have a lot of debt that you simply cannot pay, many times on time or otherwise, you can’t make them, and bankruptcy helps you with that. It helps you get rid of that debt you can’t pay so that you can make your payments on time. Most of our clients are able to keep all their property when they file for bankruptcy and making those payments on the property they keep is another way to raise their credit score.
Bankruptcy helps you get back into the mainstream of life – back into commerce and business. In other words, when you have debt you can’t pay, you are not out doing business (buying, selling, etc). But when all that debt is gone, then you can do that.
In addition, at my law firm, we offer a credit enhancement program called “7 Steps to a 720.” That program teaches you how to raise your credit score by yourself. It doesn’t take bad marks off your credit; nothing can do that legally. But it teaches you how to raise your credit score in spite of those things so you come out of it better than you were before with at least a 720 if not better.
Those are all things you can consider when trying to make the decision of whether bankruptcy is right for you.
If you’re considering filing for bankruptcy or if you have any questions, call (901) 327-2100 or fill out one of the contact forms on this page to speak to one of our experienced bankruptcy attorneys.