Most people who file for bankruptcy already have poor credit because of debt and late payments. A bankruptcy filing will stay on your credit report for up to 10 years. But, by discharging debt, your credit score can actually improve. Lending institutions know that an individual cannot file for a Chapter 7 bankruptcy for 8 years after a discharge. As a result, it is not uncommon for a filer to receive credit card offers immediately after that discharge.
The key to a successful bankruptcy filing is to change the spending habits which got you in trouble in the first place. By filing bankruptcy, you can achieve a ‘fresh start,’ and get another chance at financial success. However, it is important to be careful about which credit offers you accept so you do not find yourself back in debt down the road. Creating and following a budget is the key ingredient.
Bankruptcy gives you another chance, but it is up to you to make the most of that second chance. If you have any questions about your rights in bankruptcy, do not hesitate to contact me for a free consultation.