Boston Bankruptcy Attorney

Bankruptcy and Your Credit

A number of people are concerned that filing for bankruptcy will destroy their credit report and they will never get another credit card or be able to buy a home later in their lives. While it is true that filing for bankruptcy will have a negative impact on your credit score, the majority of people filing for bankruptcy already have some credit issues and lower credit scores.

A credit report is a history of a person’s record paying back loans and other debts. Under federal law, everyone is entitled to an accurate history, but not a re-writing of already correct history. The credit report can properly include delinquencies or bankruptcy.

A bankruptcy discharge will not erase discharged creditors from your history or even the pre-bankruptcy payment history. A credit report should have the amount outstanding for each account as zero once bankruptcy has been filed.

Bankruptcy discharges can be reported on a credit history report for up to 10 years from the date of filing. Assuming a person has some form of income, those who file for bankruptcy should be more credit-worthy after filing for bankruptcy. This is because old debts no longer have a claim on future income.

After filing for bankruptcy, your previous credit history becomes a thing of the past. It is not the only factor playing a role in your life or credit report. While bankruptcy does have a negative impact on a person’s credit score, it should be seen as a challenge to rebuild better credit.

Contact a Boston Bankruptcy Lawyer

If you are considering filing for bankruptcy and have questions or are in need of a lawyer, contact the Boston bankruptcy lawyers of Joshua Spirn & Associates at 1-800-975-5346.