Boston Bankruptcy Lawyer

Bankruptcy and Credit Reports

When a person files for bankruptcy, the mark can show up on a person’s credit report for up to 10 years. While this can hurt a person’s credit report and ability to receive financing at prime interest rates, a person can work to get his or her credit rating back on track while bankruptcy is still on the report.

Having a bankruptcy on a credit record could make it harder to rent an apartment or to obtain a credit card at a favorable rate of interest. Bankruptcy marks can also make it very difficult to obtain a home mortgage loan or insurance.

By eliminating debts and “wiping the slate clean” through bankruptcy, all future lenders are put on notice that a person has had difficulty repaying his or her debts. Creditors are more likely to refuse to extend credit or to make a person pay for the additional risk that the creditor is taking in extending a person credit. People are made to pay for the risk through higher interest rates and a number of other ways.

Even with a bankruptcy on a credit report, a number of lenders will still do business with a person or extend the new credit. This is because the discharge obtained in bankruptcy leaves all future earnings free from the claims of past creditors.

A person can obtain a credit report via Experian, Equifax, and Trans Union. The reports obtained contain loan and credit card accounts, balances, and payment history, bankruptcies and liens. In many cases, a person is entitled to a free copy of his or her free report as long as extra-cost products like a credit score or automatic update reports.

Contact a Boston Bankruptcy Lawyer

For more information on the effects of filing for bankruptcy, contact the Boston bankruptcy lawyers of Joshua Spirn & Associates at 1-800-975-5346.