CREDIT AFTER BANKRUPTCY

One of the most common reasons that people in need of bankruptcy put off the idea is that they fear damage to their credit ratings. Ironically enough, and surprisingly enough, bankruptcy is often the quickest route to debt repair. This is the case for a number of reasons:

• A debtor who carries very large amounts of debt may not have another viable means of doing away with that debt. Paying it off incrementally over time can take years. Meanwhile, the debtor’s credit rating remains low because of his or her excessively high debt-to-income balance.
• A debtor who is defaulting on loans will have a very poor credit rating. Bankruptcy will only improve it in the long run, by comparison.
• While it is true that a bankruptcy remains on one’s credit record for up to 10 years, it is also true that a person who has received a debt discharge will not be able to file bankruptcy again for several years. Creditors know this — and they often seem to jockey for position, trying to be the first to get debtors back on the hook following bankruptcy. In this way, their income through high-interest loans or credit lines will be guaranteed, since credit customers will not be able to file bankruptcy anew and wipe new debts out again for up to eight years.
• Our clients who file bankruptcy usually have much better credit scores than before bankruptcy, within a year after the discharge of their debts.

Davis Law Firm is at your service from bankruptcy law offices throughout Texas, including several locations in San Antonio. Credit after bankruptcy? Lawyers at our firm are ready and willing to address this and other concerns you may have as you contemplatebankruptcy as a route to debt relief and ultimately, credit repair.

Contact Our Bankruptcy Law Firm

If you are even contemplating bankruptcy, we urge you to take action now. Call us or e-mail us to schedule a free initial consultation with a lawyer regarding the debt relief that you need.