Bankruptcy and Credit Information from Our Jackson, Michigan, Lawyer
To learn more how bankruptcy may affect your credit score and future relationship with creditors, contact me online or call 517-788-3030 and schedule a free initial consultation.
How does bankruptcy affect my credit rating?
Issuers of credit (like banks and credit card companies) are free to consider the fact of a bankruptcy filing in deciding whether to extend credit. Credit reports may list bankruptcy filings for up to 10 years. Some issuers of credit may decide to extend credit regardless of a bankruptcy. Others may be willing to extend credit only after a number of years have passed, or until the bankruptcy filing is no longer on the credit report.
Some creditors will offer you credit more freely than to other people in financial difficulty because you may not be able to file another bankruptcy for many years to come. For the most part though, for obvious reasons, it is best for you to avoid incurring new debt as much as possible after bankruptcy. Using debit or prepaid cards allows the convenience of not carrying and paying with cash, but without incurring any debt.
What can I do to reestablish my credit after filing bankruptcy?
In some jurisdictions there may be debtor education programs offered in connection with Chapter 13 cases that can help you reestablish credit. Where such programs are not available, you may be able to obtain a secured credit card, which requires that you deposit funds with the credit card issuer. This provides the opportunity to show responsible use of credit, which is a major factor in any lender’s credit decisions. Other major factors are length of employment and length of residency.
How can I obtain a copy of my credit report and correct any errors?
All persons are entitled to one free credit report per year, from each of the three approved credit agencies. Additionally, whenever your application for credit is denied, the credit issuer is required to give you a copy of any credit report that was used in making the decision. If there are errors in a report, such as an incorrect Social Security number or a debt that is not owed, you should make a request for correction in writing to the bureau, enclosing copies of any documents that would establish the correct facts.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
Contact me, attorney Mark H. Hashley, to schedule an appointment and discuss the details of your case. My office is open weekdays from 8 a.m. to 5 p.m. Evening and weekend appointments are available upon request. Credit cards accepted.