Memphis, Tennessee, Bankruptcy Attorney
One of the important questions a bankruptcy lawyer hears is, "What is this going to do to my credit?" The answer depends on your individual situation, but the news is not as bad as many people anticipate.
At the Jonathan Garrett Law Firm in Memphis, we do our best to answer all your questions. We recognize that you are dealing with a critical financial decision and treat you with respect. Contact us today for a free consultation with an attorney who will help you evaluate bankruptcy and your financial future, including steps you can take to rebuild credit.
The Immediate Impact of Bankruptcy
Most people considering bankruptcy have already missed numerous payments and suffered substantial damage to their credit. There may not be much credit to protect. Others have managed to juggle bills and maintain decent or even strong credit ratings, but they can see "judgment day" approaching. In this case, the debt relief benefits of Chapter 7 or Chapter 13 bankruptcy often far outweigh the impact on credit.
If you want to know where you stand before filing, the Fair Credit Reporting Act was amended in 2003 to provide you with one free credit report each year. For the period soon after filing, you probably will not be able to qualify for most conventional home loans, car loans or credit cards.
Ten Years With No Credit at All? Not True.
A bankruptcy will show up on your credit reports — with all the major bureaus such as Equifax, Experian and TransUnion — and remain on those reports for 10 years. However, this does not mean you have to wait 10 years to get credit.
In fact, lawyer Jonathan Garrett offers counsel and strategies for people who want to begin rebuilding credit soon after filing bankruptcy. For example, he recommends applying for new revolving credit accounts soon after filing— with the stipulation that you should not accumulate new debt. By using department store, gas and other credit cards but paying off the balance each month, you can begin to rebuild credit.
At the Jonathan Garrett Law Firm, we share legal knowledge and counsel with our bankruptcy clients. Contact us for a free initial consultation, and we will be sure to discuss strategies for rebuilding credit.
