Rebuilding Credit FAQ

One common myth about bankruptcy is that it will wreck your credit forever. The opposite is actually true. Bankruptcy can actually act as the tool that you need to begin repairing your credit.

Should I Avoid Bankruptcy To Spare My Credit?

In fact, usually the opposite is true. You can immediately start rebuilding your credit after the bankruptcy is complete. Rather than continuing to dig yourself deeper into debt and a hole that you cannot get out of on your own, you can put a stop to the damage being done to your credit by filing for bankruptcy. It will allow you to get financial footing and start building your credit.

Some clients delay filing with the good hope of avoiding bankruptcy only to return a year later finally having to file. Do not make the mistake of delaying when there is no realistic hope of avoiding the inevitable. Begin your recovery sooner than later.

For instance, many creditors will extend credit to you right away. They know that you cannot discharge debt for several more years, so you are a lower risk. You can use this credit to your advantage. After the bankruptcy, your income can be used on things you need rather than paying back debt. You should use this new credit wisely, appropriately paying it back and building up your credit score.

Don't take on your creditors alone!

Call or email the Counce Law Firm at 901-201-6012.
Free confidential consultation with a lawyer, not a paralegal.
We take the time to understand your needs and answer all of your questions. While we want to solve your problem quickly, it’s important that you are comfortable with the process, and understand how it will impact you. These thoughtful conversations enable us to ensure the best possible outcomes.

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Will I Be Able To Keep Any Property?

Also, in bankruptcy, we can find ways to reaffirm certain debts that you have, which will allow you to keep property and pay it back. This can help your credit rating and relationship with that creditor who may be a source of future credit.

Our lawyers have a detailed understanding of how credit works, particularly for those who file bankruptcy. We will provide you individualized guidance in repairing your credit and building a solid financial foundation. Bankruptcy can be a powerful tool to turn your finances and credit around and make them start working for you again.

Doesn't A Bankruptcy Mean I Won't Be Able To Buy A Home?

Many people fear they will never be able to own a home again. However, many times people are able to start that process again within a couple of years after a bankruptcy discharge. If you file soon enough to save your home, you also will not have to deal with a foreclosure on your record.

By no longer having the pile of bills to pay back each month, you can now use your income to save for money to put toward a down payment for a new home. The amount you are able to save and put toward this down payment can greatly benefit the type of financing you can get for the home.

Contact Us Today

Call now to learn about what options are available to you in your particular financial situation. Contact our law firm today online or call (901) 201-6012 to schedule a FREE CONFIDENTIAL CONSULTATION.

Unlike many firms you will always discuss your financial situation with an attorney, not a paralegal or assistant.

We are a Title 11 Debt Relief Agency. We help people file for bankruptcy relief under the Bankruptcy Code. This ad does not create an attorney-client relationship until a written agreement is signed.

A credit score is the result of a mathematical formula that uses the information in your credit file, such as how well you have paid your bills in the past, to calculate how likely you are to pay your bills in the future. Higher scores make it more likely that you will obtain the best loans. What is confusing is that each company uses its own formulas for calculating credit scores.

Helping Clients Rebuild Credit Scores For 30 Years

Often, the biggest roadblock individuals have in moving towards debt relief is the concern a bankruptcy will ruin their credit score. In reality, if you are buried in debts, banks are unlikely to lend you any money based on your low credit rating. Filing for bankruptcy is many times the best and first step towards rebuilding your credit.

At The Law Offices of Philip F. Counce, we have more than 30 years of experience helping clients obtain debt relief in Memphis, Tennessee, and surrounding areas. We are committed to guiding you through the bankruptcy process, while addressing any of your concerns over the impact a bankruptcy could have on your credit score.

Take A Step Toward Rebuilding Your Credit Score

Filing for bankruptcy is just one factor involved in determining your credit score. A credit score is based on more than 100 factors, including timely payments, the number of unsecured debts and any judgments on your record.

Chapter 7 or Chapter 13 bankruptcy will help eliminate many negative factors on your credit and your credit will begin to improve. For example, when you establish a repayment plan or discharge your debts, you will gain the financial freedom to begin making payments on time for your car or truck. These important steps will help your credit score begin to bounce back.

We recommend starting a savings account at a credit union or local bank to build a relationship with a financial institution. After a period of time, this credit union or bank may be a good source to obtain a loan.

Stop Unsolicited Credit Offers

You may ask the nationwide consumer credit reporting companies to leave your name off lists for unsolicited credit offers by calling 1-888-5OPTOUT (1-888-567-8688).

Call now to learn about what options are available to you in your particular financial situation. Contact our law firm today online or call 901-201-6012 to schedule a FREE CONFIDENTIAL CONSULTATION.

Unlike many firms, with us you will always discuss your financial situation with an attorney, not a paralegal or assistant.

We are a Title 11 Debt Relief Agency. We help people file for bankruptcy relief under the Bankruptcy Code. This ad does not create an attorney-client relationship until a written agreement is signed.

When you make a payment on a credit card or loan, the company that extends you credit keeps a record of how much and how often you pay. Information from those companies and other sources report your credit, loan and payment history to one or more credit reporting agencies. These credit reporting agencies combine this information from into a single credit file.

What Are Credit Reports?

Unfortunately a credit report may not include everyone you owe because some creditors do not make reports to the agencies.

Three nationwide companies prepare credit files for people in the U.S.: Equifax, Experian, and TransUnion.

Some information contained in a credit report that may be viewed by lenders is:

  • A list of companies that have given you credit or loans
  • The total amount for each loan or credit limit for each credit card
  • How often you paid your credit or loans on time, and the amount you paid
  • Companies that have asked to see your credit report within a certain time period
  • Lawsuits to which you are a party
  • Your address and past addresses
  • Your employers
  • Other details of public record

Free Credit Reports

Under federal law, you are entitled to receive one free copy of your credit report from each credit reporting company every 12 months. You may get a copy of your free report at www.annualcreditreport.com. Don't be fooled by the websites that use the word "free."

How Long Can A Bankruptcy Be Reported?

There is more incorrect information floating around about how long a bankruptcy can be reported than about most bankruptcy concerns. Both Chapter 7 and Chapter 13 bankruptcies can be reported for 10 years from the date you filed your case, with few exceptions.

What You Should Do

The single most important thing that you can do is to monitor your credit reports regularly to check that the information is up to date, is accurate and not misleading. Such monitoring is your first line of defense to protect against identity theft, false reports and reporting that you owe debts that have been discharged in bankruptcy. We suggest that you review your credit reports about three months after discharge.

Federal law allows you to challenge credit reports that contain inaccurate or misleading information without charge from the credit reporting agency. The law requires that the agency go back to the source of the information and investigate. Then the agency is required to give you the results of the investigation within five days of completion of its investigation.

The credit reporting agency must delete any information that is found to be inaccurate, incomplete or that simply cannot be verified.

Companies Promising To Clean Up Your Credit Report

The Federal Trade Commission (FTC) and the Consumer Finance Protection Bureau (CFPB) say that you should be wary of companies that claim they can repair your credit for a fee, remove bankruptcies, late payments or other negative information. They cannot do anything that you can't do on your own for free.

The problem was addressed by Congress and enacted The Credit Repair Organization Act to protect the consumer from unscrupulous credit repair companies that counsel people to make false or misleading statements, alter your identity, or commit other frauds. The act also prohibits credit repair agencies from charging or receiving any money to repair your credit before such services are fully performed.

We are a Title 11 Debt Relief Agency. We help people file for bankruptcy relief under the Bankruptcy Code. This ad does not create an attorney-client relationship until a written agreement is signed.