Chapter 13 bankruptcy & your credit

By: Darrell Castle

A common barrier that keeps a person from filing for bankruptcy is thinking it’s going to kill his or her credit, but this is a myth.


If you’re in the position to where you’re considering filing for bankruptcy, then you’ve probably missed some payments and are behind on your bills, meaning you already have an unfavorable credit score in the first place!

Though a bankruptcy itself will not help your credit score, it’s the first step towards improving it! It is critical to discuss the timing of bankruptcy with your bankruptcy lawyers Memphis, TN respects so that you can minimize negative impacts to the process.

When you file for Chapter 13 bankruptcy, you’re filing a plan confirming you’ll make monthly affordable payments for 3-5 years to pay off your debts. Once that process is complete, that debt is gone and you can re-establish your credit and begin rebuilding it the RIGHT WAY.

At Darrell Castle & Associates, we have a great credit restoration program called “7 Steps to a 720” which will teach you secrets the banks don’t want you to know so that you can improve your credit score to a 720 (A+ rating) in a short amount of time. We offer this program free to our clients.

With that program, plus making the appropriate lifestyle and spending changes, it’s easy to get your credit to a much better place than it was before the bankruptcy. It just takes some patience to get there!

If you have any questions or if you’re considering filing for bankruptcy, we’d love to talk to you. To speak to one of our experienced Memphis bankruptcy attorneys, free of charge, you can call us at (901) 327-2100 or fill out one of our online contact forms.