One issue that discourages some people from filing bankruptcy is the potential detrimental effect it may have on their credit. It’s true that a bankruptcy can stay on your credit report for up to ten years and it can hurt your credit score. However, the majority of bankruptcy filers have a below-average credit score at the time of filing. For these clients, filing bankruptcy can actually make their credit score go up because they are discharging debt; the amount of debt you carry determines, in part, your credit score. Many of my clients have seen their credit scores increase by over 100 points after their bankruptcy was completed. If you do start with a higher than average credit score, you can expect your score to decrease when you file bankruptcy. Generally, the higher the score, the more it will decrease. However, not filing bankruptcy and allowing your debts to go to collections will also negatively impact your credit. Just a few unpaid debts can make your credit score drop dramatically. Nevertheless, most people can re-establish their credit within 12 to 24 months after their bankruptcy case is completed.
If you have more questions about your credit score and the effects of bankruptcy on your credit, I will be happy to answer these questions. As an experienced and dedicated Fort Worth bankruptcy attorney, I can offer advice on how to proceed based on your particular situation. You and I can meet face to face to discuss your options. To schedule a FREE consultation, please contact me at (817)-732-7590 or (972)-819-3861. You can also send me an E-mail or complete the Free Case Evaluation.