How Filing Paperwork With a Bankruptcy Attorney in Lawrence, KS Affects the Credit Score?

Many people are afraid to file bankruptcy because of the negative impact on their credit scores. They’ve heard that the filing can keep the score low for seven to 10 years. They worry that they’ll never be able to get a credit card, finance a car, or even rent a different apartment. A Bankruptcy Attorney in Lawrence KS can explain how filing actually affects the person’s credit rating and why the situation usually isn’t as bad as people fear.

About Credit Scores

It’s true that a credit score takes a hit after filing. However, from that point forward, the individual has the opportunity to gradually improve the rating. By the time someone needs to declare bankruptcy, their credit rating has probably already been decimated. They’ve probably fallen far behind on bills and may have had access to too much credit for their income level.

Credit scores tend to drop to the same level no matter what the rating was before filing. That’s simply how the process works, bringing the score down into a range between 500 and 540. A person whose rating is already that low has little to lose by filing bankruptcy through an attorney such as Joseph I. Wittman. The rating must rise to at least 600 or higher before it’s considered fair or good.

Starting Over

After having a Bankruptcy Attorney in Lawrence KS file the necessary paperwork, the person now can start anew. Making payments to new creditors on time in the future will begin bringing the credit score back up. There also may still be payments to current creditors that were not included in the filing. With online services available that allow people to track their credit scores for free, it’s easier than ever to monitor the situation and make corrections to their behaviour as the score routinely changes to a small degree.

The individual will likely qualify for a limited number of low-balance credit cards within a couple of years. The companies will offer increases in available credit as the customer proves he or she is reliable with timely payments. Click here for information on one particular lawyer providing assistance with bankruptcy filings.

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