Call Now!
Call Us 414-326-9231 608-260-7133 Text Us 414-326-4709

How will bankruptcy affect my financial life, credit availability? P.2

Last time, we began looking briefly at how the type of bankruptcy for which a debtor files can impact his or her financial life post-bankruptcy. Another important issue to consider regarding the impact of bankruptcy is how it will impact a debtor's credit score and his or her access to credit.

Exactly how a bankruptcy filing impacts a debtor's credit score and credit availability depends on various factors. Whether, and to what extent, a debtor experiences a decreased credit score, depends on where he or she is at when the bankruptcy filing is made. In some cases, the drop in a debtor's credit score will be significant, especially if he or she quickly shifts from being a distressed debtor who is regularly making his or her monthly payments to a bankrupt debtor under the protection and supervision of a bankruptcy court. On the other hand, distressed debtors who have long delayed a bankruptcy filing may not experience a significant change in their credit score. 

The type of bankruptcy for which a debtor files does also impact his or her credit reporting as well. According to Experian, one of the three major credit reporting agencies which make credit reports available to consumers, a Chapter 13 bankruptcy filing remains on the debtor's credit report for seven years after the filing date, whereas a Chapter 7 bankruptcy remains on his or her credit report for 10 years after the filing date. The longer a bankruptcy is reported, of course, the longer it will continue to impact the debtor's credit profile.

After bankruptcy, most lenders have a diminished ability to obtain quality credit cards, low-interest loans and other forms of credit. The temptation, for many debtors, is to swear off credit and let one's credit self-rehabilitate. The best thing one can do to speed up the process, though, is to actively make wise use of the credit that is available and to move on to better forms of credit as they become available. Also important is to check to make sure the credit agencies are properly reporting on income which has been discharged in bankruptcy. An experienced bankruptcy attorney is able to help provide guidance in this area. 

No Comments

Leave a comment
Comment Information
Email Us For A Response

Free Case Evaluation

* indicates required field

Miller & Miller Law, LLC
  • VISA
  • Master Cards
  • Discover
Milwaukee Office map Madison Office map Kenosha Office map

633 W Wisconsin Ave, Suite 500
Milwaukee, WI 53203

Phone: 414-312-6581
Fax: 414-277-1303
Milwaukee Office

2810 Crossroads Drive
Suite 4001
Madison, WI 53718

Phone: 608-260-7133
Madison Office

6123 Green Bay Road
Suite 210
Kenosha, WI 53142

Phone: 262-326-1669
Kenosha Office

Appleton Office
4321 W. College Ave.
Suite 200
Appleton, WI 54914

Phone: 920-280-3838
Appleton Office

Brookfield Office
200 S. Executive Drive
Suite 101
Brookfield, WI 53005

Phone: 262-261-0665
Brookfield Office

Glendale Office
6333 N. Green Bay Avenue
Glendale, WI 53209

Phone: 414-973-8662
Glendale Office

Fax: 414-277-1303 - We also have offices in Appleton, Glendale and Brookfield to better serve you.