Bankruptcy means I can never obtain credit again, right? W R O N G !!
This is a good question that I get a lot. I wish to be very clear: There is no law that says because you filed a bankruptcy you cannot again obtain credit. Now or in the future. Indeed, it has been said that for some folks whose credit is already in the crapper (charge offs, judgments, etc.), the filing of a bankruptcy will actually, immediately boost your low credit score because 1.) instead of $20,000 or whatever the number is in debt on your credit score, now as a result of the bankruptcy filing, you have no debt, and 2.) you are in most instances precluded for filing again for eight years.
As a Ft. Lauderdale bankruptcy attorney, I’ve seen many clients receive new credit card solicitations before they are even out of bankruptcy (4 months). It is a very competitive industry and credit companies want your business. And, if you have a mortgage payment or car loan(s) that you reaffirm in the bankruptcy, meaning you and the lender agree you will retain the house or car and keep paying, by virtue of making these payments you will even more quickly reestablish your credit score. I just had a former client who filed bankruptcy less than two years ago call needing some items from her file; guess what - she needed them because she was buying a new house. I’ve had clients tell me they are back up in the 700s credit score range within this two years. It just ain’t that bad, I’m happy to report.
It is true a bankruptcy may stay on your credit report for 7 - 10 years. But, again, I’d guess more than 50% of the people who visit me are already in bad shape with their credit score. As stated above, the bankruptcy filing will probably improve the score, and quickly.
The saddest cases I see are good people who struggle and struggle, scrimp and try to pay creditors over time, only to eventually have something occur like a lawsuit, judgment or garnishment. The event finally causes them to throw the towel in and seek redress by filing bankruptcy. You will note a theme throughout my website, that as a South Florida bankruptcy attorney practicing law for well over 30 years now, I get great satisfaction out of solving in a very big way a person’s or a couple’s financial problems. I’m saying it’s better late than never, but I wish some of my people would have come in sooner, because the money spent trying to pay creditors, could have been money in their pocket.
If one is too far in debt without foreseeable, sufficient income to get out, realize this and take proactive action to wipe the slate clean and get a fresh start.
I can help. I take your personal financial problems personally.
-Ft. Lauderdale Bankruptcy Attorney Steve Glerum.