Legal Question in Bankruptcy in Texas

What happens to your credit after declaring bankruptcy?

Using your site, I know what type of bankruptcy to file and what I can legally keep but I am concerned about after the bankruptcy. Will I be a credit ''pariah'', unable to establish new credit? We have been carrying debts for 14yrs trying to get ahead and keep what little credit we have but due to higher interest rates, we have made little or no progress. In the overall scheme of things, how do you rate bad credit, as opposed to bankruptcy, as opposed to paying cash or doing without? Thank you for your time.


Asked on 8/01/03, 10:24 pm

2 Answers from Attorneys
Andrew Nichols Law Office of Andrew B. Nichols

Re: What happens to your credit after declaring bankruptcy?

I would say your credit is already pretty "bad". Surprisingly, I can actually show you how filing bankruptcy can "improve" your credit. If look at credit as the ability to get a loan, your ability to get someone to lend you money will improve AFTER you have wiped out all the outstanding debt you have currently. Technically speaking, the word bankruptcy can appear on your credit report for up to 10 years after your case is concluded. However, in 2 to 3 months after your case is concluded you will receive offers for new credit cards. In 6 to 9 months you can qualify for a new car loan. We have heard that mortgage companies will give you serious consideration 2 to 3 years later. This is all assuming you reestablish a credit history and pay your new credit obligations on time. I HOPE YOU HAVE READ MY FIRM PHILOSOPHY! Everyone is entitled to a chance to start over fresh. Please feel free to give me a call to discuss your situation in more detail.

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Answered on 8/03/03, 9:20 am
Rush Wells Ratliff & Wells

Re: What happens to your credit after declaring bankruptcy?

Your credit is probably already in serious trouble. Weigh many more (you have 14 already) years of struggle against the "stigma" you fear and the ability to improve you and your family's lifestyle.

Conrtact Michelle at 385-3302 for an appointment

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Answered on 8/02/03, 12:32 pm


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