Many debtors are surprised when they learn it is possible to actually have a higher credit score within one year after the completion of a Chapter 7 bankruptcy (than if they had not filed). Although bankruptcy case be perceived to be a negative reflection on your credit, it is not the only factor creditors use when making a lending decision. Some of the positive effects that you will experience upon completion of your Chapter 7 bankruptcy are as follows:
- All of your eligible unsecured debt will be discharged. Therefore your debt to income ratio will be improved. This is one of the factors that raises your credit score.
- The negative payment history that is being used against you when creditors make lending decisions will be gone and the late items on your credit report will show as “discharged in bankruptcy”. Everyday that you put between the discharge of your case and the rest of your life will continue to improve your credit score.
- By continuing to make payments on the secured debts that you have elected to keep such as a house or car, will establish a positive payment history. It is also common to receive credit card offers approximately 6 months after you receive your bankruptcy discharge. The bankruptcy will remain on your credit report for up to 10 years, however it does not have to affect you for the full 10 years. The fact that the bankruptcy is on your credit report does not mean that you will not experience positive lending opportunities.
Many people think that filing bankruptcy will destroy your spouse’s credit However, under the Equal Credit Opportunity act, married couples are not required to have joint credit or file bankruptcy together. You can file bankruptcy without involving your spouse and your bankruptcy will not show up on their credit report (unless it is a joint financial obligation).
Rest assured that you are in good hands! Our legal practice is focused on representing people just like you to get the debt and stress relief you need. Our bankruptcy attorney can stop creditor harassment, lawsuits, judgments, mortgage foreclosures, auto repossessions, huge medical bills, utility shutoffs and more. We are friendly people and easy to talk to. Plus we offer free telephone consultations as a convenient way to discuss your financial situation with our office. We’ve helped thousands of California and Nevada residents solve their debt problems and we’d like to help you with your financial issues.
Contact us today to schedule your free telephonic consultation.
We help debtors throughout the San Fernando Valley, Santa Clarita Valley, Conejo Valley and surrounding areas, including but not limited to Acton, Agoura Hills, Alhambra, Altadena, Arcadia, Atwater Village, Bakersfield, Bell, Bell Canyon, Bell Gardens, Bellflower, Beverly Hills, Burbank, Cahuenga Pass, Calabasas, Canoga Park, Canyon Country, Chatsworth, College Hills, Cypress Park, Downey, Eagle Rock, East Pasadena, El Sereno, Encino, Glendale, Glenwood, Granada Hills, Hidden Hills, Hollywood, Kagel Canyon, Knollwood, Lake View Terrace, Lake Balboa, La Canada Flintridge, Lancaster, La Tuna Canyon, Las Vegas, Littlerock, Llano, Los Feliz, Mission Hills, Monrovia, Montecito Heights, Moorpark, Newbury Park, North Hills, North Hollywood, Northridge, Oak Park, Olive View, Orange County, Pacoima, Palmdale, Panorama City, Pasadena, Pearblossom, Porter Ranch, Quartz Hill, Reno, Reseda, Riverside, Rosemead, San Diego, San Fernando, San Gabriel, San Marino, Santa Clarita, Saugus, Sepulveda, Shadow Hills, Sherman Oaks, Sierra Madre, Silver Lake, Simi Valley, Somerset, South Pasadena, Stevenson Ranch, Studio City, Sun Valley, Summerlin, Sunland, Sylmar, Tarzana, Temple City, Thousand Oaks, Toluca Lake, Toluca Terrace, Tujunga, Valley Glen, Valley Village, Valencia, Van Nuys, Verdugo City, Universal City, Warner Center, West Hills, West Hollywood, Westlake Village, Winnetka and Woodland Hills.