Immediately after you file bankruptcy, your creditors can no longer call you and any collection efforts in place against you must cease as a result of the automatic stay. However, while there are several benefits to filing for bankruptcy in the short term, many people are concerned about the negative effect the bankruptcy process may have on your credit in the long term.
At Rieser & Marx, LLC, our Dayton bankruptcy attorneys are committed to helping our clients understand the most effective way to rebuild credit after bankruptcy. Although it may currently seem out of reach, you can gain an improved financial situation and credit score after bankruptcy.
It is a myth that filing for bankruptcy will ruin your credit forever. You can actually take steps to rebuild your credit score while you are repaying your debt in Chapter 13 or after you have discharged your debt in Chapter 7. Working with an experienced and knowledgeable Dayton bankruptcy lawyer is in your best interest, as we can help guide you towards making the best decisions.
Yes, most people see their credit score begin to rise within a year after filing bankruptcy. If you are considering filing for bankruptcy, your credit score has probably already been affected by your debt and late payments. By discharging your debt and making changes to the way you handle debt, you can start to raise your credit score.
Contact a Dayton bankruptcy lawyer from our firm at (937) 224-4128 or in South Florida at (561) 515-6019 to learn more about filing bankruptcy and the potential effect it can have on your credit.