Many individuals are worried that filling for bankruptcy will adversely affect their credit score. What most people don’t realize is that by the time individuals can really benefit from filing a bankruptcy petition, their credit score has already taken a beating and has fallen to an all-time low. Think about it: each time you miss a credit card bill payment or your mortgage payment, these companies have the right to report your delinquent account to any one (if not all) of the three major credit reporting agencies: Equifax, Experian, and TransUnion. After months of struggling to keep up with your bills, filing for bankruptcy cannot make your score any worse. In fact, for many people, bankruptcy ultimately facilitates the repair of their credit score.

Although a bankruptcy filing can be reflected on your credit record for up to ten years, keep in mind that the bankruptcy itself will essentially discharge your liability for any of the old debt. If you are relieved of your old debt, your monthly expenses will go down. Ironically, you may have more money to pay your monthly bills after you obtain a bankruptcy discharge.

The clever credit card companies know the law and are well aware of the fact that if you have already filed a chapter 7 bankruptcy, the bankruptcy code requires you to wait at least eight years before filing for bankruptcy again. If you already filed a chapter 7 bankruptcy, but now you want to file a chapter 13 bankruptcy, you have to wait at least four years. If you filed a chapter 13 bankruptcy and wish to file another chapter 13, you are required to wait at least two years.

During the time period when you are legally prohibited from seeking any bankruptcy protection, credit companies take advantage of your predicament and, knowing that you probably have very few credit card offers, offer you a credit card with exorbitantly large interest rates. The credit card companies are keenly aware of the fact that your past debt are discharged and your current income any any assets you acquire in the next several years can be garnished for several years before you can even think about filing another bankruptcy petition.

You may be surprised by just how many creditors are again willing to lend to you – despite your freshly inked bankruptcy petition. A bankruptcy discharge can be and will be reflected in your credit report, but that alone will not keep you from obtaining credit after you receive a bankruptcy discharge. Bankruptcy is not the end of your world as you know it. Filing for bankruptcy can be the fresh start many families are looking for.

Don’t forget to check out our other blogs on this topic.

If you or your spouse are considering filing for bankruptcy, call a Los Angeles Bankruptcy Attorney today. Our Los Angeles Bankruptcy Attorney can help you and your spouse make the best possible financial decision for you and your family.