What Happens to Your Credit After Bankruptcy?
One of the most common concerns with bankruptcy is that your credit is going to never recover from it. We are happy to tell you that this is not the case. Not only because we offer a “2 year to 720 credit score” program, but because bankruptcy is not something that destroys your finances for the rest of your life the way it has been portrayed as.
For starters, your credit score is more of a snapshot of your credit history and not a full report. Your credit score is going to likely be low when you file for bankruptcy, but if you are already in the situation where you need to seek out bankruptcy, then your credit score was likely low to begin with.
Difference Between Credit Score and a Credit Report
So how does bankruptcy affect your credit? While it will impact your score, you can help raise that score by using this opportunity without debt to start paying off your bills on time and not spending outside your budget. As time goes on, you will see your credit score rise.
Where you will see challenges with bankruptcy and your credit is your credit report. A bankruptcy will stay on your credit report for 7 years. So, anyone that wants to look at your credit report will see that you have a bankruptcy on it. However, every single bill you have ever let reach collection also goes on that credit report for 7 years. So, if you file for bankruptcy and that is the last negative credit item on your credit history, then it is a sign that you have proven to be more creditable.
How We Help
At Blake Goodman, PC, Attorney, we help you work through your credit. Our “2 year to 720 credit score” program is designed to help you recover from credit after bankruptcy and give you the credit assistance you need to get back on your feet. We provide the guidance you need to not only learn and understand your credit, but to help you make a lifestyle change.
Many of the people who reach bankruptcy got to that point because their lifestyle was unable to handle the debts they were putting on themselves. They overspent on budget, used their credit card to make purchases they couldn’t afford, and all-around needed to make changes. Our program can teach you good habits and a full understanding of what credit is.
Maybe you don’t need a lifestyle change. Maybe an unexpected medical expense pushed you to bankruptcy and you are just looking for a way to get your credit score back to where you want it. We can provide help with that as well. Our program is meant to put you back on the path of credit recovery.