Orlando Lawyer providing professional Credit Reporting and Debt Collection after Bankruptcy Attorney Services in Orlando, Winter Park, Maitland, Longwood, and throughout the Central Florida Area.
Bankruptcy laws were originally written to provide relief to those who did not have the means to pay debtors (chapter 7 bankruptcy) or to help restructure multiple debts (chapter 13 bankruptcy) so that the debt is manageable. Essentially, a bankruptcy was intended to help people get fresh start and back on their feet financially.
Bankruptcy began to carry a negative stigma when personal credit and credit scores entered the picture. While the recent American Financial Recession hurt many people and families, one thing that it also did was de-stigmatize the act of filing for bankruptcy. A bankruptcy is once again widely considered a way to actually repair an individuals credit over a period of time.
So how does a Bankruptcy affect your credit score?
A bankruptcy will still negatively affect your credit score, and will stay on your credit report for 7 to 10 years. In the first two to three years, your credit will be negatively affected the most. However, during those two to three years, as you continue to make consistent and on-time payments on remaining and new debts, your credit is starting to be repaired. Many people report being offered credit soon after this two to three year period. The reason for this is these people made a deliberate effort to take steps to improve their financial standing while living within their new financial set of circumstances.
So while a Bankruptcy will directly affect your credit score in a negative way, your financial actions following a bankruptcy will also affect your credit score in a positive way going forward by either showing consistent improvement in financial habits, or negatively if the individual does not take advantage of the ability to improve his or her credit following a bankruptcy.
What should I do regarding my credit report following a Bankruptcy?
First and foremost you should understand that businesses are quick to post delinquent debt on your credit report and very slow or do not take any action to let the credit reporting agencies know that the debt has been dissolved or restructured as a result of a bankruptcy. Therefore, as your legal counsel, Michael Tierney, P.A., will immediately help you report not only the successful bankruptcy, but address each post on your credit report that was covered by the bankruptcy.
The mistake that many people make is that, while they report the bankruptcy, they do not address the posts on their credit report that was affected by the bankruptcy. When this occurs, as far as the credit reporting agencies are aware, you not only filed for bankruptcy, but you still have active delinquent debt as well.
When Michael Tierney, P.A., immediately reports the Bankruptcy on your behalf, they also address all related credit posts affected by the bankruptcy. This not only starts the 7 to 10 year period that the bankruptcy will stay on your credit immediately, but gives the credit reporting agencies all the appropriate information needed for you to have an accurate credit report moving forward.