Will filing Bankruptcy ruin my credit rating?

In most cases: "no." In fact, in my experience, filing bankruptcy will actually IMPOVE your credit rating after the bankruptcy process is over (around 100 days).

In most of my client's cases, their credit score has already been damaged from non-payment of bills (or even just non-payment of the first mortgage).

Why might your credit rating go UP after filing bankruptcy?

1) Once your bankruptcy filing is 'approved' (the legal word for this is "discharged") and your case is closed, your credit rating actually goes up almost 100 points, which in many cases turns out to be higher than when you first filed.

2) Once your debts have been discharged, your debt-to-income ratio is significantly lower.

3) You cannot file a chapter 7 bankruptcy for eight more years, so any creditor that extends you credit knows that you will have to pay them.

Although many people feel too proud to go through the bankruptcy process, bankruptcy was designed to give people who need it a fresh start. Wouldn't you rather put this behind you rather than screen all of your calls to avoid the creditors and bill collectors?

btw, if you recently filed bankruptcy and have not completed the process (a chapter 7 bankruptcy usually takes about 100 days from start to finish), there is no way creditors will approve any further credit (except maybe a new landlord).

____________________________________

The Law Office of Matthew D. O'Conner is dedicated to helping clients file bankruptcy while retaining their dignity and pride. We provide assistance, legal counsel and advice and will be able to answer your bankruptcy-related questions and help you file a Washington bankruptcy.

Contact us today at (206) 782-0722 for a free consultation - it's entirely confidential.

More Bankruptcy FAQs

mdoLaw Bankruptcy Blog

____________________________________

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

This web site is for general informational purposes only and is not legal advice.

The information contained on this web site is in no way intended as a substitute for legal counsel, and your receipt of the information does not give rise to a lawyer-client relationship between Matthew D. O'Conner and you. The ramifications of the law for any particular situation depend on a variety of factors, so you should seek professional legal counsel before acting upon any information contained on this web site.