Your Credit Score After Bankruptcy

: Reese Baker & Associates

  Filed under: Credit

creditOne of the main reasons individuals decide to go bankrupt is because they feel it is going to give them a fresh start and allow them to get back on their feet financially. It is stressful having surmounting debt, and it can be stressful going through a bankruptcy. Many people find that by using an experienced Houston bankruptcy attorney to assist them it helps with the bankruptcy stress.

How It Affects Your Score

What has become commonplace is for many individuals long after their bankruptcy has been successfully completed that their previous bad debt situation is still haunting them. This is evident on the credit reports. In some cases when the bankruptcy debts have been ruled as void during the bankruptcy action they are still remaining as active on the credit reports, hurting your credit score. The only way these individuals facing this problem can rectify it is to pay on these debts even though they were expunged in the bankruptcy.

It has been indicated that some of the major banks are not heeding the bankruptcy courts concerning these void debts. They are simply ignoring the discharge injunctions put in place by the Federal bankruptcy courts. Clients who use a bankruptcy attorney that offers bankruptcy aftercare will have a better chance of dealing with a major problem such as this. It is important for bankrupt individuals to be able to move forward once they have been through a bankruptcy, and making sure the credit report is accurate plays an important role in this.