EFFECT ON CREDIT

Bankruptcy and Credit

People are often reluctant to file for bankruptcy because they are fearful of the impact this will have on their credit rating. While everyone’s situation is different, filing for bankruptcy may, in the long run, have a positive effect on your credit rating. At Rauf & Smith, we can help you rebuild your credit and give you the tools to use it responsibly.
If you are feeling burdened by debt and seek a new beginning, contact a Northern Kentucky bankruptcy attorney or call us at 859-474-1130 for a free initial consultation. From our offices in Covington, Kentucky, we help individuals, families and business owners throughout Northern Kentucky.

Your Credit Rating Will Make It Through Bankruptcy

If you file for Chapter 7 bankruptcy, your debts will be eliminated. Under Chapter 13 bankruptcy, your debts are reorganized into an affordable repayment plan. In either case, once the bankruptcy process is complete you will likely be an attractive candidate for many credit firms.

There are some differences between Chapter 7 and Chapter 13 bankruptcy and the effect of bankruptcy on your credit that are worth noting:

• A Chapter 7 filing will appear on your credit report for 10 years, not seven as is commonly believed. This does not necessarily harm your credit rating for this period as your debt-to-income ratio will be lowered due to the discharge of your debts.

• A Chapter 13 filing reduces debt and puts you on a plan to make consistent repayments to creditors. As a result, you will eventually find yourself on solid financial ground, which will make you more attractive to lenders.

Find Out How Your Credit Will Be Affected

Everyone has different degrees and types of debts. How bankruptcy will affect your credit depends on your personal situation. At Rauf & Smith, we will review your situation and can give you more detailed information on how your credit will be affected if you file for bankruptcy.

Call a Covington Increase Credit Score Attorney for a Free Initial Consultation

Contact a Northern Kentucky bankruptcy attorney or call us at 859-474-1130. We are offering free consultations and we work alongside our clients and provide a personal level of service that you will not find at most law firms.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.