Robert J. Adams and Associates
Will Bankruptcy Ruin My Credit Forever?
The following is a sample of emails or telephone calls that I frequently get.
Dear Mr. Adams:
I have a lot of bills and can’t get ahead. But, I am afraid if I file Chapter 7 bankruptcy my credit will be ruined for forever.
(name withheld for privacy)
Legend has it that filing bankruptcy means your credit is ruined FOREVER.
My experience shepherding thousands of people through bankruptcy says the opposite.
Fact: your credit starts improving when a person files Chapter 7.
Yes, it sounds crazy, so let me explain WHY:
When considering bankruptcy, for most people:
- Their credit is getting worse;
- They have past due bills or late payments; or
- They are not paying their bills at all;
- It is impossible to pay bills. They are backed into a corner;
- Credit card companies kept increasing the interest and they hit you with late fees;
- Your credit scores keep going down;
- New potential creditors are afraid they will file bankruptcy.
So why would anyone see you as a better credit risk once you file bankruptcy?
- Once you file Chapter 7 you can’t file a new Chapter 7 for a long time;
- Since you got rid of a lot of debt you have more money in your pocket; you are a better risk to a lender;
- Credit scores start to rise immediately.
Our past Chapter 7 clients have qualified for car loans and home mortgages.
Many of our Chapter 7 clients have said: “This is the first good night’s sleep I’ve had in a very long time.
Disclaimer: Posting on legal matters is for information purposes only and is not to be construed as legal advice.
For more information about Bankruptcy such as Chapter 7 or Chapter 13, call today.