Many people contemplating bankruptcy are concerned that it will prevent them from obtaining credit in the future. This is a myth that many debtors believe. Actually, bankruptcy does little to hurt your credit. Credit damage is caused by delinquent payments and collection accounts. Derogatory credit is what causes your credit score to plummet. A bankruptcy will discharge those debts and allow you a “fresh start” to rebuild your credit. Creditors will often extend a loan to purchase a vehicle as soon as you receive your bankruptcy discharge. This is because creditors know you are debt free and that you cannot file bankruptcy again for several years. However, trying to pay off debts may take years before your credit score increases and lenders will consider you a good risk.
If you would like to learn more about bankruptcy options, please contact me at (480) 833-1113 for a free consultation.
Attorney Profile: Janet Spears, Arizona Bankruptcy Attorney
