Salt Lake City Bankruptcy Attorneys

Bankruptcy and Your Credit Score

Filing for bankruptcy definitely will have a negative impact on your credit score. This is a well-known fact, and the precise effects that Chapter 7 or Chapter 13 bankruptcy will have on your credit will vary. However, this negative impact may not be quite as bad as it may seem, or as you may have heard. As a matter of fact, the negative effect of a bankruptcy on your credit score begins to diminish as soon as your case is finished and your debt is discharged. There have been reports of people with FICO scores over 700 as early as 24 months after their bankruptcy discharge!

Of course every individual bankruptcy case will vary, as will your ability to rebuild your credit following a Chapter 7 or Chapter 13 bankruptcy case. By consulting a Salt Lake City bankruptcy attorney at the Stone Law Firm, you can understand exactly how filing for bankruptcy will affect your credit score – and we can give you valuable advice regarding how to rebuild your credit after the successful completion of your bankruptcy case.

Rebuild Your Credit After Bankruptcy

Your credit score is very important to your ability to make large purchases and to get loans with low interest rates. Your ability to buy a home or a car or to make personal purchases on credit will be affected by your credit score, as your payments are likely to be much lower if your credit score is higher. With the right financial planning and by being responsible in paying off your debt, you can begin to rebuild your credit immediately. In fact, some lenders actually consider individuals who have filed for bankruptcy as a good risk to take – as they will be unable to file again for 7 years. As such, the chance of recovering the debt is very high.

Contact a Salt Lake City bankruptcy lawyer at the Stone Law Firm today for more information about how bankruptcy will affect your credit score, and what you can do to counteract this. We represent clients throughout Salt Lake City, Ogden and Provo, Utah.