Bankruptcy’s Effect on Your Credit Report

How Will A Honolulu Bankruptcy Affect My Credit Score?

Our Hawaii Bankruptcy Attorney Responds

A common concern for people facing overwhelming debt is the effect that bankruptcy might have on their credit scores. While this concern is valid, the reality is that if you have unmanageable debt, if you are falling behind on payments and are facing foreclosure or car repossession, your credit score will reflect this already. Filing bankruptcy will, in the long run, actually help raise your credit score and offer you a fresh start to reestablish yourself financially. Our Hawaii bankruptcy attorney is one of the largest filers in the state, and he also offers debt negotiation and tax resolution services outside of bankruptcy. Blake Goodman can guide you through the best options to actually improve your credit score over time.

Bankruptcy Can Improve Your Credit Score Over Time

Filing for bankruptcy may not be an ideal situation, but neither is constant struggle underneath massive debt. Consider this: if you do not file for bankruptcy and continue on a downward spiral of debt:

  • Late payments will lower your credit score
  • Nonpayments will lower your credit score
  • Late payment fees and interest charges add to the debt
  • Foreclosure and repossession will lower your credit score
  • Legal judgments against you will have a serious negative effect on your credit score
  • You will stay in debt with no improvement in sight

While your credit may take an initial “hit” due to filing for bankruptcy, you will also effectively receive a clean slate from your creditors at the end of either Chapter 7 or Chapter 13 bankruptcy. This will allow you a fresh start to build your credit back up over time.  In fact, most bankruptcy filers will almost immediately receive new offers for credit cards and are able to obtain mortgages and car loans.

We Understand and Can Help

Our Hawaii bankruptcy lawyers understand that times are hard, and that bad things happen to good people. We understand that a loss of employment, unexpected medical expenses or other typical life problems can put ordinary families in a world of hurt. We understand that bankruptcy can be a frightening process – but know that by calling our office, you are taking the first step to improve your situation. An experienced Honolulu bankruptcy lawyer can help you navigate the bankruptcy process and help you get on the path towards financial stability. Fill out our questionnaire or call our office directly at 808-528-4274 and achieve a new peace of mind.