Bankruptcy And Your Credit Score: What A Savvy Attorney Can Do For You

23 March 2023
 Categories: , Blog


While filing for bankruptcy can be a helpful step to take, that doesn't mean it is without some consequences. In fact, bankruptcy can impact your credit score significantly, lowering it by hundreds of points for some consumers. 

The good news is that hiring a savvy bankruptcy attorney could help you rebuild your credit after you file for bankruptcy. Here's what you need to know.

Your Attorney Can Provide Guidance

Your bankruptcy attorney can provide you with guidance for rebuilding your credit soon after you file. For instance, your attorney may suggest that you open a secured credit card. This type of card requires a deposit, which is refundable after you make all your payments as agreed. This can help to demonstrate your creditworthiness and improve your score.

Your Attorney Will Help You Dispute Inaccuracies

Sometimes, inaccurate or outdated information shows up on your credit report after you file for bankruptcy. A savvy attorney can help you to dispute these inaccuracies, which can improve your score over time.

Your Attorney Can Negotiate

In some cases, an attorney may also be able to negotiate with creditors to remove negative information from your credit report or settle debts for less than the full amount owed. This could give you a fresh start and allow your score to improve more quickly.

Your Attorney Can Protect You From Fraud

Fraud is a common problem after filing for bankruptcy. Some scammers use debt relief programs to scam people. A savvy attorney can protect you from fraud and advise you on the best course of action for rebuilding your credit.

Your Attorney Will Help You Understand Your Rights

A bankruptcy attorney can also help you understand your rights under the Fair Credit Reporting Act, which governs how credit reporting agencies can use and share your credit information. Knowing your rights can help you protect and improve your credit score.

Your Attorney Will Help You Develop a Personalized Plan

A good bankruptcy attorney will help you develop a personalized plan for rebuilding your credit after you file. This can include borrowing conservatively, using debit cards and cash when possible, and utilizing other strategies to improve your score.

Hire a Bankruptcy Attorney You Trust

Ultimately, when it comes to rebuilding your credit after filing for bankruptcy, hiring a savvy attorney is key. Your attorney can provide guidance and support throughout the process, helping you stay on track and get back in good standing with creditors.

Contact a local bankruptcy attorney to learn more.