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How Will Bankruptcy Affect My Credit?

One of the most common misconceptions about bankruptcy is that it will ruin your credit. In reality, if you are having problems paying your bills, your credit score may already be about as low as it can go. Filing bankruptcy may actually be the fastest way to improve your credit.

I am Birmingham, Alabama bankruptcy attorney Brent W. Davis. I dedicate my entire practice to helping people seek debt relief through Chapter 7 and Chapter 13 filings. With more than 20 years of experience practicing exclusively in the area of bankruptcy law, I am in a strong position to help you rebuild your credit after bankruptcy.

Can Bankruptcy Improve My Credit?

Many lenders will view you as an improved credit risk after you file bankruptcy for the following reasons:

  • You will have no credit card debt.
  • You will not be eligible to file Chapter 7 bankruptcy again for eight years.
  • If you are in a Chapter 13 plan, you will be in an orderly payment plan that you can afford.

Not everyone’s credit score will improve after filing bankruptcy. For example, if you had been meeting minimum monthly payments on credit cards and you did not have issues, such as delinquencies, judgments, repossessions and foreclosure, bankruptcy will harm your credit initially. Your credit score will improve rapidly if you pay your bills on time.

A bankruptcy filing will remain on your credit report for about 10 years.

Schedule a Free Initial Consultation With a Birmingham Bankruptcy Attorney

To discuss your debt situation, call me, Birmingham bankruptcy lawyer Brent W. Davis. You can reach me by phone at (205) 989-1919 or via e-mail. My regular business hours are 7:30 a.m. to 6 p.m., Monday through Friday, and free parking is available.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.