Effects of Bankruptcy – Discharged Debts – Credit Scores
An essential feature of our client service at Rosenbaum Law Offices (now Davis Law Firm) is our ability to help our Chapter 7 and Chapter 13 clients reestablish good credit through sound debt control practices, credit report management, and simple but effective savings and borrowing strategies. For additional information about life after bankruptcy, contact the Texas debt control lawyers at our San Antonio law firm.
When you receive your discharge under Chapter 7 or Chapter 13, all of your dischargeable debts will have officially gone away, and you will never have to pay them back.
Nondischargeable debts and claims secured by a deed of trust or motor vehicle will still have to be repaid. In nearly all cases, we will have worked out arrangements with your creditors for payment terms that you can live with. An important consideration here is that your ability to file for bankruptcy again is sharply limited by the Bankruptcy Code and in most cases, another filing will not be an option. In some cases, however, it might make sense to discharge most debts in a Chapter 7 case, and later if necessary file a Chapter 13 case to deal with nondischargeable claims through a payment plan under Bankruptcy Court protection.
Once you get clear of your discharged debts, you should focus on rebuilding your credit history. A record of your bankruptcy will remain on your credit report for ten years, but most debtors will restore their access to credit much sooner than that. You will receive offers for high interest credit cards almost immediately, and most debtors will qualify for moderate auto loans within two years or less.
Debtors must be very careful about the credit offers they accept. Unless you develop a sound approach to consumer credit, you might get into trouble again, with fewer options for resolving them. Our San Antonio credit control lawyers will be happy to show you strategies for developing a strong credit record much sooner than you otherwise might, while avoiding risky high interest credit offers.
For further information about our ability to protect your credit after bankruptcy as well as during your bankruptcy case, contact an experienced San Antonio bankruptcy attorney at Rosenbaum Law Offices (now Davis Law Firm) for a confidential and free consultation.