Two frequently asked questions are: How does bankruptcy affect my credit and can I obtain credit after I file bankruptcy? These are excellent questions for which there are not very good answers. What we do know may seem obvious but is extremely important.
FIRST, clearly your credit score will be adversely impacted. It may already have dropped due to your financial condition prior to our filing your bankruptcy. Many things besides bankruptcy could adversely affect the score. These would include law suits and or judgments; short sales in real estate; mortgage foreclosures; failure to pay bills etc. A bankruptcy filing would add to this list. We do not know how much it will cause your score to drop. Normally we find that the credit score is one of the least of your concerns at the time of filing. In short you must file to help get your financial situation in order and to implement your plan to regain your financial freedom. The only sure way to start raising your credit score after filing is to have on time consecutive monthly payments.
SECOND, credit will be available once you file. For example, you will receive credit cards in the mail and will be able to get a car loan. What you will not like is the interest rate. Also you should strongly question using any available credit. The interest rates typically go down over time once a regular payment history is established.
THIRD, please be very careful of offers to fix your credit or repair your credit score. We are not aware of any "sure" way to magically raise your credit score.
Contact Us
Contact bankruptcy attorney C. David Ward or Joseph D. Lovelace for a consultation today.
Illini Legal Services is engaged in the private practice of law and is not a public legal aid agency. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
