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San Antonio Bankruptcy - How Bankruptcy Affects Your Credit

If you are facing foreclosure, repossession, a lawsuit, or simply too much credit card debt, you may consider filing for bankruptcy as a debt relief option. Many people in San Antonio have used The Bankruptcy Process to obtain a fresh financial start. So when filing for bankruptcy happens to be the best debt relief option, you may wonder what effect a bankruptcy filing will have on your credit. That is a reasonable concern, however when filing for bankruptcy does happen to be the best option to address your financial problems, then it is usually not going to be a question of filing for bankruptcy or maintaining your good credit. Most people who file for bankruptcy are likely to have significant credit problems or fairly damaged credit way before they file. There are other people who are apprehensive to file for bankruptcy even when it is the best option as they believe that not doing so will somehow preserve their remaining credit or that their debts will just simply go away after 7 to 10 years. Even if bad debts did fall off after 7 to 10 years that is a significant time to live with bad credit as opposed to obtaining a fresh financial start through bankruptcy.

Bankruptcy may give you a fresh financial start and wipe your credit slate clean.

Everyone has a different set of circumstances that determine whether or not they should file for bankruptcy relief. It doesn’t make much sense to not file for bankruptcy in order to preserve bad credit that will continue to be reported for 7 to 10 years. Foreclosure, lawsuits, judgments, repossessions, delinquent payments, and payment plans through Consumer Credit Counseling services are reported to the credit bureaus for 7 to 10 years. Filing a bankruptcy will last just as long but you’ll have a fresh start. It may sound absurd, but if you pay a charged off credit card, satisfy a judgment from a lawsuit, or repay all of your delinquent debts via a credit counseling program, you may find out that they still remain in your credit history for as almost as long as a bankruptcy. The irony is that having delinquent debts because of a temporary setback like a loss of employment, medical illness or any reason, and then paying them off at your earliest opportunity still reflects negatively. Those temporary events can scar your credit to where very few lenders would be willing to extend credit with those circumstances regardless if you paid them in full. Additionally, if any lender would extend credit under those circumstances, it would probably be on unfavorable terms.

When faced with losing a home to foreclosure or filing a Chapter 13 Bankruptcy to save it, and make repayment on terms you can afford, worrying about credit doesn’t weigh much since letting the foreclosure take place could leave you without a place to live. The foreclosure would still remain on your credit as opposed to a Chapter 13 Bankruptcy filing in which you chose a repayment plan instead of letting the foreclosure happen. If you were a lender asked to extend credit to someone who had a foreclosure and repaid their debt responsibly on terms they could afford or extend credit to someone who simply let the property be foreclosed on, who would you lend to? Likewise, losing a car to repossession or filing a Chapter 13 bankruptcy to stop it and repay the amount you’re behind on terms you can afford, worrying about credit doesn’t weigh much since letting the car get repossessed may leave you without transportation, and a repossession on your credit.

A fresh start in bankruptcy allows you to re-establish your damaged credit. Aside from being reflected on your credit report, the bankruptcy laws do not restrict you form obtaining credit after the case is completed. Keep in mind that whether you have good or bad credit is always a subjective issue. It is the perception of the prospective lender that matters. The decision lies in the eyes of a prospective creditor and some lenders will extend credit to anyone for a high enough interest rate, whereas some lenders are extremely selective. Although it’s all subjective, remember that when your property and ability to keep it is at stake, and your credit is poor already, filing for bankruptcy may be perceived by future lenders as a responsible approach.

The major credit bureaus will report a Chapter 7 Bankruptcy filing for up to ten years. They report Chapter 13 Bankruptcy filings for up to seven years upon successful completion of the Chapter 13 repayment plan. If your Chapter 13 case is dismissed before completion of the repayment plan, the Chapter 13 Bankruptcy can also be reported for up to ten years.

So the bottom line is that filing for Bankruptcy Debt Relief is not the worst this you can do to your credit. A Bankruptcy filing whether it be a Chapter 7 or Chapter 13 is certainly not the end of the world, and it’s definitely not a death sentence to your credit rating. If you are like most people who are good candidates for bankruptcy then it’s highly likely that you already have tainted credit. I you choose to file for Bankruptcy, it will appear on your credit report for seven to ten years afterwards. Just keep in mind that after your debts are discharged in a bankruptcy proceeding, you will have a clean slate once again which is the first step to rebuilding your credit.

The fear of not having any credit in the future or the fear of not being able to reestablish credit after bankruptcy shouldn’t stop you from filing for bankruptcy. Stopping foreclosure, repossession, or doing what may help you and your family to get peace of mind and a fresh financial start is probably a more responsible approach.

If you live in San Antonio, Boerne, New Braunfels, Converse, Helotes, Kerrville, Comfort, Bandera, Canyon Lake, Seguin, or in Bexar County, Comal, Gonzales, Guadalupe, or Kerr County and are considering filing for Chapter 7 Bankruptcy or Chapter 13 Bankruptcy contact The Law Offices Of R.J.Atkinson for a free bankruptcy evaluation. We would like to help you face your Debt and obtain a fresh financial start.

Contact San Antonio Bankruptcy Attorney R.J.Atkinson: 210-805-9909

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San Antonio Bankruptcy Lawyer offer Affordable Bankruptcy & Debt Relief Services. San Antonio Bankruptcy Attorney provides Low Cost Bankruptcy & Discount Rates on Bankruptcy Attorney Fees serving San Antonio, Texas.

Bankruptcy Attorney Lawyer RJ Atkinson provides Chapter 7, 11, 12, 13, Affordable Bankruptcy Help & Discount Legal Services in San Antonio
Filing Bankruptcy can sometimes be the fastest way to get out of debt and may be the most affordable way to get a fresh financial start. Chapter 7 Bankruptcy can quickly wipe out your debts, increase your credit score, stop wage garnishments, get rid of credit card debt, eliminate medical bills, stop payday loans, stop bill collectors, erase negative credit reporting, and reestablish new credit after bankruptcy. RJ Atkinson, San Antonio Bankruptcy Lawyer has payment plans to make filing Chapter 7 or Chapter 13 Bankruptcy affordable which include low cost flat fees for Chapter 7 that may be considered the cheapest bankruptcy attorney fees compared to fees other bankruptcy lawyer charge. Chapter 13 Bankruptcy can save your home from foreclosure, save your car from repossession, lower monthly payments, reduce interest rates, get rid of late fees, reduce credit card interest, payoff high credit card debt, raise your credit score, stop creditor harassment, get rid of debt, reduce debt, eliminate creditor calls at work, stop collection calls, start over financially, discharge debts and/or be debt free in 3 to 5 years. IRS tax problems, tax levies, wage garnishments, back taxes, payroll taxes, income taxes can often be handled in Chapter 13 bankruptcy. Divorce/Bankruptcy – past due child support arrears, alimony, spousal support, and divorce debt can often be handled in chapter 13 bankruptcy. The Law Offices of RJ Atkinson handles debt consolidation, loan modifications, credit card debt settlement, debt negotiation, lawsuit defense, IRS problems, credit card lawsuits, TROs temporary restraining orders to foreclosure, forbearance agreements to foreclosure, FDCPA Fair Debt Collection Practices Act lawsuits, FCRA Fair Credit Reporting Act lawsuits, credit report disputes, debt collection lawsuits, adversary complaints in bankruptcy, bankruptcies, foreclosure workouts, mortgage short sales, real estate property tax disputes, civil litigation, commercial litigation, tax lawsuits, small business bankruptcy, corporate bankruptcy, business creditor representation, and most every kind of debt related issue or financially based legal problem on a case by case basis.

San Antonio Bankruptcy Attorney at RJ Atkinson handles Personal Bankruptcy, Business Bankruptcy cases and discount legal services in and around San Antonio TX Bexar County, as well as in New Braunfels, Cibolo, Comfort, Bandera, Boerne, Kerrville, Hondo, Castroville, Medina, Poteet ,Pleasanton, Lytle, Live Oak, Leon Valley, Jourdanton, Floresville, La Vernia, Nixon, Poth, Stockdale, Carpenter, Ingram, Hunt, Center Point, Selma, Seguin, Schertz, Helotes, Garden Ridge, Hill Country Village, Fredericksburg, Uvalde, Alamo Heights, Terrell Hills, Universal City, or in the counties of Atascosa, Bandera, Bexar, Comal, Dimmit, Edwards, Frio, Gonzales, Guadalupe, Karnes, Kendall, Kenney, Kerr, Maverick, Medina, Real, Terrell, Uvalde, Val Verde, Wilson, Zavala.
Pursuant to 11 U.S.C. §528, “We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.”
San Antonio Bankruptcy Lawyer 8000 I.H. 10 West, Suite 600, San Antonio, TX 78230-3868. Bankruptcy Phone: 210-805-9909