Life After Bankruptcy

Sound Advice About the Consequences of Bankruptcy

Most of our consumer Chapter 7 and Chapter 13 clients are concerned about the effects of a bankruptcy filing on their future access to credit. Our attorneys can advise you about the benefits and continuing consequences of bankruptcy in your case. Cutting to the chase, we'll tell you that you reasonably can expect steadily improving credit after your bankruptcy filing, so that you can qualify for a mortgage at a decent rate within two years.

Call 866.439.0886 for advice about credit and bankruptcy consequences

To learn how bankruptcy can function as a springboard toward rebuilding your credit, contact a knowledgeable attorney at The Fried Law Firm in Bethesda. We not only advise our clients about their options for resolving serious financial and tax problems in and out of bankruptcy court, we can also help you take advantage of your opportunities for reestablishing sound credit.

Most people know that a bankruptcy filing will stay on your credit record for ten years. Less widely known is the fact that a bankruptcy case by itself is a fairly minor factor in credit decisions, and it loses significance over time. For most of our clients, bankruptcy is actually a positive development for their credit score.

Because you stand to discharge a lot of old debt in a bankruptcy case, and you can only get a bankruptcy discharge only once every eight years, your creditworthiness tends to improve after bankruptcy. As you develop experience making timely payments on your remaining obligations — including payments under a Chapter 13 plan — your credit score will gradually rise.

You'll probably start getting new credit card offers soon after your bankruptcy petition is filed. Using a new credit line cautiously and responsibly will also drive your credit score in the right direction. Consistent performance on your post-bankruptcy obligations over time usually means that you'll qualify for a car loan on decent terms within 18 months or so. Within two years, you should be ready for the new mortgage market, assuming that the rest of the economy will be healthy enough to support real estate lending at all.

We advise clients throughout Maryland and metro Washington, D.C.

Our lawyers can give you more specific advice about your credit prospects once we get a chance to review and analyze your financial situation. For most of the people we represent, bankruptcy represents a good first step toward credit rehabilitation. For additional information about rebuilding your credit or any other consequences of bankruptcy, contact The Fried Law Firm in Bethesda.

The Fried Law Firm, P.A., is a federally-designated Debt Relief Agency, which proudly helps people filing for bankruptcy.