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Bankruptcy Credit Repair by State

Many people who are drowning in debt fear bankruptcy because they are afraid of its impact on their credit report. But in reality, it can actually improve your score in both the short and long term. Filing for bankruptcy allows you to wipe out your debts, start fresh, and rebuild your credit.

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Credit Repair

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Rebuilding Credit After a Bankruptcy in Your Area

Even though filing for bankruptcy can cause a sharp drop in your score, it won't go too much lower if your credit is already bad. In reality, the positive effects often outweigh this initial blow, enabling you to rebuild your score.

Eliminating debts can rebuild your score by:

After your debts are discharged, you can start to rebuild. Since your outstanding balances have been wiped out, you will have more disposable income to make your new payments on time. When you establish a good track record, your score will increase. In fact, many people achieve higher credit scores post-filing than they had before.

How Long Does It Take?

Creditors are more likely to offer to finance a person who has discharged their debts than someone still buried in them. For this reason, you usually can get a credit card account or auto loan shortly after filing.

Bankruptcy can also help get your plans for homeownership back on track. When you're struggling with debt, your poor credit can disqualify you from obtaining a mortgage. However, if you file for bankruptcy, you can get an FHA mortgage after 2 years with Chapter 7 and 1 year with Chapter 13.

Bankruptcy Chapter 7 vs. Chapter 13

These laws were designed to help people suffering economic hardship rebuild their finances through a new start. Chapters 7 or 13 can help you find relief from creditors and a fresh lease on life.

With Chapter 7, you can start over by wiping out your unsecured debts, such as medical bills. While a court-appointed trustee is allowed to liquidate some of your assets to pay back your credits, the majority of DebtStoppers clients don't lose any of their personal possessions.

The other option is Chapter 13. If you take this route, you can reduce your debts and reorganize them into one affordable monthly payment. Instead of paying creditors directly, you'll send your payment to a court-appointed trustee for 3 to 5 years, allowing you to rebuild your finances over time.

What Is the Best Option for Your Situation?

An experienced bankruptcy attorney can review your situation's specific facts and circumstances and help you decide on the best option for you. Call or text DebtStoppers today to schedule a debt evaluation with one of your skilled lawyers. We've helped thousands of people start over fresh through bankruptcy.

DebtStoppers is one of the only law firms in the country that offers a genuine $0-Upfront Chapter 7. Call or text us today to set up your free consultation and start to rebuild your life.

Credit repair by state