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Will my credit be ruined forever If I file for bankruptcy?

When I conduct my California bankruptcy consultations, I try to tell my clients that although a bankruptcy can be reported at the three credit bureaus for up to 10 years, it does not have to affect you for the full 10 years.  And to be honest, by the time most clients come to meet with me their credit scores are already below the 600′s. Yes, bankruptcy does remain on your credit report for up to 10 years, however immediately after filing for bankruptcy you have provided yourself with a fresh start. The seemingly almost never ending snowball effect of bad credit decisions or the inability to pay your debt obligations due to unforeseen circumstances is more devastating to your credit than a onetime bankruptcy.

So what happens with your credit score after you file the bankruptcy? (keep in mind that credit scoring is an anomaly and 9th wonder of world) Generally, ones credit rating after one year in a  post-bankruptcy status is substantial. One of the factors in determining your credit worthiness is the debt-to-income ration.  Once you receive your bankruptcy discharge, you have cleared yourself of the high debt-to-income ratio.

alot of my clients tell me that after they receive their bankruptcy discharge, they have begun to receive credit offers in the mail. The reason behind that is since bankruptcy laws prevent you from re-filing bankruptcy for a particular amount of years, the creditors are safe to assume that you will pay your obligations. The filing of bankruptcy is an option to help you start over and get back  above water. It is not an overnight process but within 12-18 months of your discharge, you will see a dramatic improvement in your ability to rebuild your credit.

If you are seeking bankruptcy help the Law offices of Chirnese L. Liverpool can help you in California and Nevada.

If you need assistance in North Carolina, contact the Maxwell Law Firm, PLLC.

 

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