What Happens To Your Credit When You File Bankruptcy

: Reese Baker & Associates

  Filed under: Credit

It’s true that a bankruptcy can stay on your credit history for up to ten years. It’s also true that when you get too far behind in your payments, those negative marks can also stay on your credit history for up to seven years.

Filing bankruptcy legally wipes away your unsecured debt and allows you to rebuild your financial health. It takes time, but by making sound financial decisions and making your payments on time, you will obtain creditworthiness again.

Avoid The Offers In The Mail

Soon after you file bankruptcy, you will start receiving credit offers in the mail. These are high-interest rate loans that will quickly put you back in the same position as before if you succumb to their tempting offers.

Take the time after bankruptcy to enjoy a simpler life without a bunch of debt. When you do decide you need another vehicle or home, if you have paid your bills on time and not signed on for more credit in the meantime, you will be offered much better rates down the line.

Review Your Credit Report

When you are finished with your bankruptcy, it is not uncommon to find “open” accounts on your report that should have been included with our bankruptcy. If you find any errors on your credit report contact the credit bureau in writing and ask for the accounts to be correctly listed as “included in bankruptcy.”

When you are applying for more credit be sure to list a bankruptcy on your credit history, intentionally omitting this information is illegal.

It will take time, and often people get high credit rates far before the ten years the bankruptcy stays on your report.

If you are considering bankruptcy to get rid of your overwhelming debt, contact a Hidalgo County bankruptcy attorney to find out what would be your best options.