One thing The Law Office of Chris D. Hefty does is get a two or three agency credit report at the beginning of your case so that we will know what your credit score is and have an accurate list of all the creditors that have made notations on your credit report.
Generally, bankruptcy will affect your credit score and credit report because all of the creditors on your credit report, as a rule, are being discharged.
Your credit report is a history of how you handle credit. Bankruptcy will be put on that report.
One of the benefits of working with our firm is that we can work with credit reporting agencies to give you a prediction of how bankruptcy can affect your current credit score. Our firm will obtain your current credit score and your estimated your credit score after 12 months of working with your agency. We can also advise you of the steps you can take to improve that score.
Many people will tell you that bankruptcy is only on your credit report for seven years. But in actuality–because of the ability of credit reporting agencies to keep your history–there really isn’t any specific time frame where the notation of bankruptcy on your credit report comes off. Some agencies, with their internal rules, update their information annually and remove information that is incorrect or too old to be helpful. But in fact, some credit agencies will keep a notation of bankruptcy on your credit score for anywhere from 10 to 20 years.
It doesn’t affect your credit as much as a lot of people think. Of course, the day after you file bankruptcy, you’re not going to be able to get a car loan. But as you pay your bills on time and borrow money and pay it back, your credit score and creditworthiness will go up, becoming more attractive to creditors.
I’ve had clients who qualified for mortgages a year after bankruptcy, and I’ve had other clients who couldn’t get a car loan for three or four years. Really, it depends on how you manage your income and your debts. The more you pay debts on time and consistently, the better your credit score is and the better the notations on your credit report.
If you need financial help, please contact my Loveland or Fort Collins office to find out how an experienced bankruptcy attorney can help you.