Bankruptcy is a great way for individuals across the country to get their financial situation back on track. However, one of the most common questions our firm is asked is, “how will filing for bankruptcy affect my credit score?” Please continue reading and speak with our experienced New York bankruptcy attorney to learn more. Here are some of the questions you may have:
How will my credit score be affected by filing for bankruptcy?
The biggest downside to filing for bankruptcy is that it will negatively affect your credit score, however, you should understand that the damage done to your credit score is not permanent, and it is not irreversible. One of the primary factors in determining how bankruptcy will affect your credit score is how good (or bad) your credit was before you filed for bankruptcy. If your credit score was already poor, filing for bankruptcy will affect it negatively, albeit not nearly as much as if your credit score was solid before filling.
How long after filing for bankruptcy will it stay on my credit report?
Unfortunately, one downside of filing for Chapter 7 or Chapter 13 bankruptcy is that it will stay on your credit report for up to ten years, which you may find makes certain financial matters more difficult, such as applying for credit cards or loans. That being said, doing so will not be impossible–but it may be more difficult.
What can I do to improve my credit score after filing for bankruptcy in New York?
Fortunately, there are several things you can do to improve your credit score after filing for bankruptcy. To start, you should ensure that you do not simply apply for multiple credit cards at once, as this can imply that you are frantic for money and will quickly go into debt once again. You should also ensure that from here on out, you pay all of your bills on time, every time. You should also continuously work to pay off any outstanding debt you may have. These are just some of the tactics you can use to rebuild your credit score after filing for bankruptcy. To learn more about rebuilding credit, or if you have any additional questions regarding bankruptcy in New York State, please do not hesitate to speak with our knowledgeable Rockland County bankruptcy attorney today.
Contact our experienced New York firm
The Law Offices of Allen A. Kolber, Esq. effectively represent clients facing bankruptcy in Rockland County and all of New York State. Our firm understands the stress one can feel when facing a difficult financial future. Our compassionate staff will work to ease your fears and help you make a new start. If you need quality legal support, contact The Law Offices of Allen A. Kolber, Esq.