Credit after Bankruptcy
Many people believe that if you file for bankruptcy you will not have credit available for a long period of time. This simply is not true. The path to credit repair begins as soon as you file your bankruptcy.
During the first year of filing for bankruptcy you will have personal loans, credit cards, and automobile loans available to you. The interest rates may be high, but the credit will be available.
CREDIT “REPAIR” THROUGH BANKRUPTCY may seem strange, but if you think about the economics behind the reasoning, it makes sense. If your credit score is already poor and you owe money to multiple creditors, you are an economic risk to a lender. If you were provided credit, you could file bankruptcy the next day and the creditor would not recover the money owed.
However, if you look for credit the day after you file for bankruptcy, you cannot file another chapter 7 for 8 years. You just cleared your debts. If you are employed, a creditor lending you money would likely get paid. If not, they have 8 years to collect the money owed. A person is often less of a credit risk after filing for bankruptcy than the day before filing.
To determine whether or not a bankruptcy filing is the right choice for you, you would need to speak with an experienced bankruptcy attorney about your specific situation. Will Willoughby Ohio, Attorney Robert A. Boyd will use his more than 25 years of experience to assist you in weighing your options and help you to decide if bankruptcy is your best option for debt relief. Contact his office at 440-230-3230 or use the contact us form to schedule an appointment for a free consultation.