After your bankruptcy you have a fresh start. Your credit rating,
which for most people who are filing bankruptcy was already low, will start to
improve.
When you file for Chapter 7 or Chapter 13 bankruptcy your
credit actually improves. Your creditors can no longer pursue you. A large part
of your debt will most likely be discharged. In a Chapter 13 bankruptcy, you
will have time to work toward repaying your debt (usually just secured debt
like mortgage arrears or a car payment). If you file Chapter 7, you will be
ineligible to file another Chapter 7 for eight years. These facts mean that you become less of a
loan default risk than you were before your bankruptcy filing.
Generally, the more time that has elapsed since your
bankruptcy discharge and the faster you establish a positive payment history,
the quicker your credit score will improve.
Questions about rebuilding your credit? Call the bankruptcy
attorneys at King and King for a free consultation. From establishing credit to
obtaining a home loan after bankruptcy, they can answer your questions. Call us at 404-524-6400 or visit
www.kingandkingattorneys.com
