As a Memphis bankruptcy lawyer, I’ve noticed that there’s a common theme in people’s concerns about bankruptcy: will it affect my credit? While it does impact your credit in the short term, this should not discourage you from moving forward with the process. In the long-term, bankruptcy will actually help you rebuild.
If you’re considering bankruptcy, there’s a good chance your credit isn’t in great shape. (In fact, if you have strong credit, you probably shouldn’t be considering bankruptcy.) Significant debt typically includes multiple late or missed payments. You could even be facing foreclosure, vehicle repossession, or liens. How can anyone extend credit to you if you have unpaid debt? While bankruptcy will appear on a credit report, it can also help you to eliminate all the other negative marks on it. Once it’s eliminated you will be debt-free, with the freedom to rebuild.
How long does bankruptcy stay on a credit report?
Bankruptcy can stay on your report for up to ten years, though some creditors might not report it for that long. During this time, as long as you pay your bills on time, the impact of the bankruptcy will lessen, and you can quickly increase your credit score. Starting with a clean financial state can help you rebuild your credit and begin saving for the future. An experienced Memphis bankruptcy lawyer can guide you as you rebuild.
We offer many resources to help you move forward, during and after bankruptcy. We’ve helped many of our clients find a vehicle loan shortly after filing. Other clients have obtained mortgages through the Federal Housing Administration, which are specifically intended for borrowers with moderate or low incomes.
We have an e-book called Life After Bankruptcy and a program called 7 Steps to a 720, which gives you tools for rebuilding your credit to an “A” rating. It’s a $1,000 program offered to our clients for free.