CALL FOR A FREE
INITIAL CONSULTATION
813.254.5696

BRIDGING YOU TO A BRIGHTER FUTURE

Can Bankruptcy Raise Your Credit Score? You Bet!

Can Bankruptcy Raise Your Credit Score? You Bet!

One of the primary concerns people have when filing for bankruptcy is whether or not doing so will affect their credit score.

The truth is it will impact your credit score and initially, that impact will be negative. However, and this might come as a surprise to a lot of people, bankruptcy ultimately helps you raise your credit score.

Putting off drastic action as your financial situation grows worse will result in a gradual decline of your score. The longer you fail to act the worse your score will get until it eventually bottoms out.

Your Credit Score Will Recover from Bankruptcy

By filing for bankruptcy, you’re causing your score to take a hit initially, but it gives you an opportunity to then begin improving your score. Bankruptcy will help the open accounts on your credit report that have late or missed payments, are over the limit, or have been sent to collections. Taking action, as drastic as bankruptcy might seem, creates a line in the sand from which you can move forward to a brighter financial future.

At the end of your Chapter 7 bankruptcy, your account balances will be listed at zero on your credit report. Any accounts that were in collections will be listed as “resolved,” and your less-than-favorable payment history will be eliminated. Instead, each debt included in your bankruptcy will be listed as “discharged through bankruptcy.”

The primary factor counting against you will be your bankruptcy. One single hit to your credit, showing future lenders that you took responsibility for your situation and did something about your debts.

Those who view your credit report will know you have filed for bankruptcy, but they’ll be able to see the improvement over time following your bankruptcy. It’s even possible to achieve a very high score following bankruptcy, which proves to creditors that you worked to improve your situation even though there was a problem in your financial past.

The more time that passes since your bankruptcy the more your credit score will improve, as long as you stay on track with your finances.

Beware Predatory Lenders Following Bankruptcy

Some people are concerned they’ll never be able to get approved for credit after they file for bankruptcy. Nothing could be further from the truth.

Many people even find they receive numerous offers after their debts are discharged. There are a few reasons for this.

First, creditors know you’ll likely feel desperate and be willing to accept terms on a credit card that would otherwise be unappealing. Second, they know that because you recently filed for bankruptcy it will be several years before you can file again. This means they aren’t at risk for the discharge of any debt you accumulate with them and they’ll be able to sue you, successfully, if you let your payments lapse.

If you’d like to know more about the rules regarding multiple bankruptcies, check out this information.

Be careful about accepting offers for credit following bankruptcy. Unscrupulous lenders will take advantage of your situation and if you don’t understand your options, you might find yourself back in financial trouble after completing your bankruptcy.

If you have questions about how bankruptcy affects your credit score or you want to know more about how filing can improve your financial situation, we can help. Contact the Law Office of Robert M. Geller at 813.254.5696 to schedule a consultation to discuss your case.

Tampa Bankruptcy Law Blog

Tips for Handling Creditor Harassment

Tips for Handling Creditor Harassment

Creditor Harassment and Bankruptcy Dealing with a significant amount of debt is difficult enough, but when creditors began hounding you...
Read More
Unexpected Debts that Can Lead to Bankruptcy

Unexpected Debts that Can Lead to Bankruptcy

Unexpected debt can cause financial issues and Bankruptcy Unemployment, poor management of credit cards and even divorce can push people...
Read More
What You Need to Know about Tax Identity Theft and How It Can Affect Your Credit

What You Need to Know about Tax Identity Theft and How It Can Affect Your Credit

Tax Identity Theft and Credit The increasing popularity of filing tax returns online has given way to a rise in...
Read More
How To File for Bankruptcy [Infographic]

How To File for Bankruptcy [Infographic]

The Bankruptcy Filing Process Need to file for bankruptcy but not sure where to begin? The Law Offices of Robert...
Read More
Five Things You Need to Know about Bankruptcy Fraud

Five Things You Need to Know about Bankruptcy Fraud

What is Bankruptcy Fraud The average person filing for bankruptcy has no intention of committing fraud. He or she is...
Read More
The Importance of Being Prepared: What You Need to Bring with You to Your Bankruptcy Consultation

The Importance of Being Prepared: What You Need to Bring with You to Your Bankruptcy Consultation

Preparing for a Bankruptcy consultation with a Bankruptcy Lawyer Filing for bankruptcy is a big decision. One of the most...
Read More
Should I Use My Retirement Savings to Avoid Bankruptcy?

Should I Use My Retirement Savings to Avoid Bankruptcy?

Financial problems can occur at any age. For those who are older and facing financial challenges as they near retirement,...
Read More
Credit Reporting Errors: Why You Need to Review Your Credit Report before Filing for Bankruptcy

Credit Reporting Errors: Why You Need to Review Your Credit Report before Filing for Bankruptcy

The importance of correcting credit errors before filing for bankruptcy Some people are shocked to learn how common it is...
Read More
Why Delaying Bankruptcy Might Be Your Biggest Financial Mistake Yet

Why Delaying Bankruptcy Might Be Your Biggest Financial Mistake Yet

Bankruptcy Mistakes There are those who are pushed into bankruptcy because of a medical emergency or the unexpected loss of...
Read More
Bankruptcy Dismissal vs Discharge: What’s the Difference?

Bankruptcy Dismissal vs Discharge: What’s the Difference?

The difference between bankruptcy dismissal and bankruptcy discharge For many, bankruptcy is unfamiliar territory and there are a lot of...
Read More

Contact Us

Search Website

Archive

Request a FREE Consultation

For The Next 5 Days Get A Free Book About Bankruptcy


 
comodo10.0Robert Marc Geller
Robert Marc GellerClients’ ChoiceAward 2018Robert Marc GellerReviewsout of 32 reviewsLEA

We are A Debt Relief Agency.
We help people file for
bankruptcy under the Bankruptcy Code

Pay Online   Bankruptcy Courses   

Tampa Office

$Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405


Tampa Law Office Map

St. Petersburg Office

$Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G

St. Petersburg, FL 33701
T: (727) 532-3939


Map and Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320





Maps & Directions

At the Tampa Bay law firm, the Law Offices of Robert M. Geller, P.A., we help people with consumer bankruptcy matters in the Tampa Bay-St. Petersburg,  Florida communities such as Clearwater,     St. Petersburg, Tampa, Thonotosassa, Riverview, Lutz, Plant City, Brandon, Carrollwood, Wesley Chapel, St. Petersburg Beach, Lakeland, Mulberry, Dade City, Pinellas Park, Largo, Seminole, Odessa, Oldsmar and Lithia, and counties such as Hillsborough County, Pinellas County, Pasco County, Polk County and Manatee County.