How Will Bankruptcy Affect My Credit?

Bankruptcy Effects on Credit

Often people are reluctant to file for bankruptcy because they are afraid of the effect on their credit rating. However, it is important to understand that this is a marathon and not a sprint. In the long run, filing for bankruptcy may have a positive effect on your credit. Our attorneys are straightforward with our clients and help them to understand their options.

At Sulaiman Law Group, LTD., we handle comprehensive debt solutions for clients. Our experienced attorneys know how to provide compassionate guidance through the bankruptcy process. We are particularly skilled at ensuring that our clients have the information they need to make educated choices. Our law firm is in Oak Brook, Illinois, and we serve clientele throughout Chicago and the surrounding areas.

Contact a bankruptcy attorney in Chicago, IL by calling us at 312-313-1613.

Effects of Bankruptcy on Credit

If you are considering filing for bankruptcy, it is important that you have a thorough understanding of the effects of that action on your credit. Filing for bankruptcy can affect your credit far into the future, so it is important to have an understanding of the trade-offs. Of course, these are just the general effects; and you must speak with an attorney to understand the specific effects of bankruptcy on your credit. Filing for bankruptcy goes on public record; that means that your petition will be a public document.

  • Chapter 7 bankruptcy: Your bankruptcy will remain on your credit report for 10 years. However, that may not harm your credit rating as much as you think, because your debt-to-income ratio will be lowered.
  • Chapter 13 bankruptcy: If you file a Chapter 13 bankruptcy, you are put in a plan where you are making consistent payments to creditors. This will ultimately improve your credit report.

Need Help With Credit Repair After Bankruptcy? Contact a Skilled Attorney.

Our lawyers know the ins and outs of the bankruptcy process. We educate our clients on the processes so they understand the legal process and the implications of the process they choose. Contact us online or by calling 312-313-1613.