Bankruptcy Is Not The End-All When It Comes To Credit

Your credit score and availability to get credit can impact your lifestyle. One common concern people have regarding bankruptcy is how filing will affect their credit score. William L. Pegg Jr. Attorney at Law believes in helping individuals before, during and after bankruptcy. When you work with him, you will have an advocate who helps you take measures to address your credit score and how to properly utilize your credit options moving forward.

How Does Bankruptcy Affect My Ability To Get Credit?

For most, there is a much better financial future after filing for bankruptcy. Bankruptcy will discharge most of your debts, and you will appear debt free. While it may be easy to obtain credit, you will want to be careful with your credit usage.

How Does Bankruptcy Affect My Credit Score?

Sometimes, filing for bankruptcy is the best option for your financial situation. If you do file for bankruptcy, your struggle isn't over. You want to seize the opportunity to get your footing back. Filing for bankruptcy has an impact on your credit score. A Chapter 7 bankruptcy can remain on your report for 10 years, while Chapter 13 may remain on your report for seven years. Those numbers can feel daunting, but you should not give up. You can recover.

Bankruptcy typically impacts your credit score in the following ways:

  • Immediately after filing: You can expect a noticeable drop in your credit score. The lower your credit score is before filing, the less impact bankruptcy will have on your score.
  • One year after filing: Critical debts, such as credit card payments, may not appear on your credit report because they were discharged in the bankruptcy. This means that your credit score may be back to where it was before filing for bankruptcy. For some, your credit score may be higher than it was.
  • Five years after filing: If your credit score was high prior to filing for bankruptcy, your score should be back to where it was. If your score was low when you filed for bankruptcy your score should be much higher than it was.

An experienced lawyer will help you take the guesswork out of the process of re-establishing your credit. If you continue to make bad financial decisions after filing for bankruptcy, your credit will continue to be negatively affected.

Giving You The Tools To Rebuild Your Credit Post-Bankruptcy

William L. Pegg Jr. Attorney at Law works with his clients after their bankruptcy has concluded because he believes in truly helping you understand how to create a more stable financial future. If you filed for bankruptcy, or are considering debt relief through bankruptcy, contact him today. Call 973-532-2822 to see what steps you can take to rebuild your credit score and properly utilize your credit options moving forward. Located in Morristown, Mr. Pegg serves individuals throughout all of northern and central New Jersey.

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