How Does Bankruptcy Affect Your Credit?

What Bankruptcy Could Mean For Your Credit

Credit scores are powerful. Your credit determines whether you can buy a home, open a credit card, get a business loan, and more. If you are facing insurmountable debt, repairing your credit might seem like a distant dream.

When you feel like you are out of options, Simon Fitzgerald LLC will advocate for a new beginning for you. We have a longstanding tradition of helping clients across Louisiana overcome difficult financial problems. Our focus includes not just the bankruptcy process – but your life after it as well.

Four Things To Know About Credit And Bankruptcy

If you are considering filing for bankruptcy but you are worried about your credit, you should know the following:

  1. Unpaid debt will hurt your credit score when reported: Without bankruptcy, your credit score may continue to decrease if creditors report that you are not meeting necessary payments.
  2. Bankruptcy will temporarily affect your credit score: When you file for bankruptcy, credit reporting agencies will keep the event on your record for a specific period. The impact of bankruptcy could be higher or lower depending on the chapter under which you file as well as your financial habits after bankruptcy.
  3. Bankruptcy can help you improve credit overall: Although filing for bankruptcy can lower your credit score for a while, it could still be more beneficial in the long run – both for your credit score and your life – than allowing debt to grow.
  4. There are many strategies for rebuilding your credit: Your credit score is never permanent; it is always changing according to your financial actions. If you file for bankruptcy, you can actively work to rebuild your credit score over time.

Filing for bankruptcy does not mean that you will never be able to get a loan again. In fact, this process could allow you to repair your financial situation so you can prepare for a better future. We can help you understand what to expect from your case.

Gain Customized Advice For Your Case

Our attorneys can take the time to explain the benefits and consequences of filing for bankruptcy. Call or email our offices in Shreveport / Monroe, Alexandria or Lafayette / Lake Charles to schedule a consultation. At 318-868-2600 (Shreveport / Monroe), 318-625-7505 (Alexandria) or 337-984-1584 (Lafayette / Lake Charles), our goal is to help you recover as fully as possible.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.