HOW BANKRUPTCY IMPACTS CREDIT: 3 MYTHS DISPELLED
Oct. 24, 2015
Bankruptcy can be an effective way to overcome crushing debt and achieve a financial fresh start. While this can be a huge benefit of filing for bankruptcy, however, it is important to understand that:
Bankruptcy cases can have some other impacts as well, particularly when it comes to people’s credit; and
Bankruptcy cases are typically the first stage in the process of improving a financial outlook, as those who file for bankruptcy will usually have some ongoing work following bankruptcy if they want to make some lasting, positive changes to their overall financial situation.
To shed some more light on the impacts of bankruptcy and what consumers should know about them, below we have presented some of the facts behind common myths about bankruptcy and credit. When you are ready to get some professional advice regarding your best options for debt relief, however, it’s time to contact a Denver bankruptcy lawyer at Garcia & Gonzales, PC.
The Facts about Bankruptcy & Credit: What Consumers Should Know
Myth 1: A bankruptcy case will stay on my credit report forever.
Fact: This is completely false. The longest that a bankruptcy case will stay on someone’s credit report will be 10 years. In some cases, however, bankruptcies can fall off of people’s credit reports about 7 years after the case has been resolved.
Myth 2: There’s no way to improve credit after bankruptcy.
Fact: This is 100 percent false. There are plenty of things people can do to start improving and rebuilding their credit after bankruptcy, with just some of these things including:
Limiting the lines of new credit they take out
Always paying off their credit card debt in full every month
Making all of their debt payments on time.
In fact, when people are focused on doing the work it takes to rebuild their credit following bankruptcy, they can start to see significant improvements in their credit score within 12 to 24 months of bankruptcy. For some people, this can end up meaning that their credit is better than it was prior to bankruptcy within a few years of their case being resolved.
Myth 3: If I file for bankruptcy, I’ll never be able to buy a house or a car in the future.
Fact: Again, this is just wrong. Given the answer explained above, clearly, people who focus on improving their credit and keeping their debt in check can position themselves to get loans for larger purchases – like homes or vehicles – in the future. While it can take a few years or more to get to this place, the bottom line is that:
It is achievable.
Life after bankruptcy can be far more promising than people tend to think.
Contact a Denver Bankruptcy Lawyer at Garcia & Gonzales, P.C.
Are you looking for real relief from serious debt? If so, you can trust an experienced Denver bankruptcy lawyer at Garcia & Gonzales, P.C. to provide you with experienced help, honest answers and the highest quality legal services.
To learn more about your best debt relief options, as well as how we can help you, contact us today by calling or by emailing us using the contact form at the bottom of this page.
When you contact us, you will communicate directly with one of our attorneys, not a paralegal or legal assistant. We welcome Spanish-speaking individuals to contact us also – hablamos Español.