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If I File For Bankruptcy, What Happens To My Credit Rating?

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If I File For Bankruptcy, What Happens To My Credit Rating?

rebuilding after bankruptcy

At Sawin & Shea, our clients are often concerned about having low credit scores. They wonder if bankruptcy will make the situation worse. On the contrary, bankruptcy can actually improve your credit and get you back on your feet financially. Here’s how an Indiana bankruptcy can help re-establish your credit.

Will Bankruptcy Ruin My Credit Score?

While we completely understand why you’d worry that bankruptcy could harm your credit, let’s clear something up. Bankruptcy is actually a route to improving your credit score, not making it worse. Many of the clients we see at the offices of Sawin & Shea arrive at our doorstep with very low (bad) credit scores. However, after they file for bankruptcy, they can often achieve a better score fairly quickly. An even higher score is absolutely within reach after your bankruptcy is complete.

How Does Bankruptcy Help My Credit Rating?

Bankruptcy significantly reduces or eliminates your legal responsibility to pay the vast majority of your debt. During the bankruptcy process, we will plan how best to discharge your creditors and force them to stop hounding you for payments. By the time you wrap up your bankruptcy, you will have a much “cleaner” platform to start making your credit better. In fact, you might even find yourself receiving fresh credit offers because those companies realize you’ve taken a responsible step toward financial stability.

Will I Ever Be Able to Buy a Car or House Again?

While buying a car or a house is usually not possible during a Chapter 7 bankruptcy, after it concludes you will have a new start financially. If you do the right things with your credit after bankruptcy, buying a car or house at a good interest rate will be available to you in the future. For a Chapter 13 bankruptcy, you may be able to buy a house during your bankruptcy with the approval of the trustee or the bankruptcy court. Chapter 13 bankruptcy can be a good choice for homeowners who wish to protect their house and ensure their family remains safe and secure at home.

How Difficult Is It to File for Bankruptcy and Re-establish My Credit?

Filing for bankruptcy is easier with the help of an Indiana bankruptcy attorney. You’ll work with your attorney to create a plan that accommodates your lifestyle and your level of income, so you can pay your bills on time every month. Remember, filing for bankruptcy isn’t simply about looking good to creditors and having a stellar credit score. The most important part is creating a new financial payment plan you can manage, so you can settle your financial problems now and look ahead to a better future.

Sawin & Shea – Indianapolis Bankruptcy Attorneys

Filing for bankruptcy is not the end. It’s the beginning of a new financial life for you. The Indiana bankruptcy attorneys at Sawin & Shea can help you get rid of the overwhelming debt and advise you on life after bankruptcy.  We are here for you during this life-changing process. Please do not hesitate to call us today at 317-759-1483 or send an email for a free consultation. We are ready to help.

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$0 Down Attorney Fees

No upfront attorney fees in qualifying cases. Pay only court filing fee, credit reporting fee, and pre-bankruptcy credit counseling session fee to get a case on file to stop garnishments, repossessions, and certain court actions. Restrictions may apply. Please call to discuss your situation and learn how we can help.