The truth is that some people's credit will be damaged for a while, and some
peoples credit may improve after filing Bankruptcy. If you already have a huge debt to income
ratio, with a lot of late payments, repossessions, foreclosures and judgments, Bankruptcy will
probably improve your credit score and make you a better credit risk. However, if you had a high
credit score prior to filing for bankruptcy, your credit will suffer, but it can be rebuilt over
time. The Bankruptcy may stay on some credit reports for 7-10 years, but that also puts potential
lenders on notice that you can't file for Chapter 7 Bankruptcy again for 8 years, so they my feel
it is safe to lend you money. Learn more by consulting with a WNY Bankruptcy Attorney.
Although Bankruptcy is part of the Public Record rarely does anyone find out
about it but you, your creditors, your codebtors, and your lawyer. Bankruptcy filings are
published in some newspapers but are generally overlooked. When was the last time you saw one.
Many people think they will lose their home if they file for bankruptcy. That does
not happen generally unless you have too much equity in your home that exceeds your Homestead
Exemption, but even then, with proper planning this problem can be overcome. Generally you will
continue to retain your home, automobile and retirement accounts. It is your attorney's job to
protect your assets, with proper planning, so you don't wind up in the poor house.
Improving your credit score and establishing good credit after Bankruptcy can
be done. It presents the old chicken and egg issue because in order to build credit, you have to
get credit. Some lenders may not be willing to give you credit after you have filed for bankruptcy,
others will. You can begin establishing credit by opening a line of credit by getting a car loan.
Car loans are less risky for lenders because they are secured. You can also get a secured credit
card from a bank. A secured credit card is when you deposit a certain amount of money in an account
and the bank will give you a line of credit for the amount that is on deposit. Be sure that the
places you get credit will be reporting your payments to credit reporting agencies or a good
payment history will not boost your credit score. To learn more about reestablishing your credit
after bankruptcy contact Buffalo NY Bankruptcy Attorney Stephen K. Underwood.