When people file bankruptcy in Dayton Ohio there are many questions that our attorneys must answer. Here are answers to the most common questions about credit and bankruptcy:
1. How long will the bankruptcy be listed on my credit report? It depends. If you file for a Chapter 7 or Chapter 11 case, the filing will be listed up to ten years. If you file for a Chapter 13 bankruptcy, it will be listed for up to seven years. However, that doesn’t mean it will have a negative impact for that, or any, length of time the bankruptcy is recorded on your report.
2. Will filing for bankruptcy damage my credit? Typically, no. The reason that bankruptcy is so beneficial for those that file is that is wipes out debt balances and eliminates the delinquent payment history associated with that account; the very things that damage your credit in the first place. So, filing for bankruptcy often improves a credit score by providing a clean slate to rebuild a new credit history.
3. Does having a bankruptcy on my credit prevent me from borrowing again? No. There are actually lenders that do the majority of their lending to consumers after they have completed a bankruptcy. In fact, most people find multiple credit offers waiting right after their debt discharge. However, it doesn’t mean you should borrow right away or take the first offer you receive.
4. What is the best way to rebuild my credit after bankruptcy? Time. Credit repair takes both time and effort. You will need to formulate a plan to make planned purchases with manageable payments. It can take six or more months to really see improvement in your overall score, but patience is a virtue. Besides, right after a bankruptcy isn’t the time for immediate borrowing, but a time for taking advantage of a bright financial future.