As a bankrutpcy attorney in Asheville, I speak with people all the time who believe filing a bankrutpcy case means they will not have credit for 7-10 years. Not true.
A Chapter 7 or Chapter 13 case will hurt a client’s credit score intially. However, filing for bankruptcy will also have a the positive credit effects of reducing their debt to equity ratio and eliminating the constant reporting of 30 day and 60 day late payments by former creditors. Those two key ingredients to a lending institution’s decision about whether to loan you money are helped substantially by achieving a bankruptcy discharge.
I frequently recommend that my clients take out a credit card soon after their discharge is issued by the Court. This article explains several different post-bankrutpcy credit card options you may want to consider.
If you are in Western North Carolina, and want to learn what a bankruptcy case would look like for you, please contact me for a free, initial bankruptcy consultation.
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