Bankruptcy

Effect on Your Credit

All of your credit history is stored with the credit bureau for seven years. In other words, all of the payments that you make on your debts, all of the defaults that you have on your loans, all of the lawsuits or foreclosures or repossessions that you have had are reflected in your credit file. A Bankruptcy is also reflected in your credit file. For most people who need to file bankruptcy, a bankruptcy does not hurt their credit rating. At the time that they file bankruptcy their debts are so large in proportion to their assets and their income that they lack credit worthiness.

A Chapter 7 bankruptcy will get rid of debts and although the bankruptcy will remain on your credit file for years, a bankruptcy will usually improve a person's credit worthiness. After debts have been discharged in a Chapter 7 Bankruptcy a debtor can often get a new car loan or new credit cards or even qualify for a new house loan.

For those creditors who need to file a Chapter 13 Bankruptcy, their credit rating usually does not improve until they are done with their Chapter 13 case and their debts have been discharged by court order.

Of course, each person's circumstances are different and you should discuss your particular circumstances with one of the experienced bankruptcy lawyers at Platt & Westby. The information contained in this message is general and should not substitute for the advice and counsel of an experienced bankruptcy attorney.

Contact our office to speak with an experienced Arizona bankruptcy lawyer at Platt & Westby.