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TX bankruptcy attorney, Texas chapter 7 lawyerYou have likely seen TV commercials about the numerous credit cards available or regarding where you can go to calculate your credit score. These shiny advertisements can leave many young adults applying for credit cards without knowing the impact that this can have on their spending habits. Receiving your first colorful card in the mail can quickly lead to two or three more, each with their own amount of debt steadily piling up. While these bills may seem harmless as a young, single college graduate, the debt enclosed with these credit cards can burden you for years to come. As the debt continues to increase, you may be wondering where you can turn for help. Bankruptcy is a valid option; however, its negative impact on credit scores can have most people seeking out financial alternatives first.

Sell Some Assets

The best way to get rid of debt? Pay it off. If you have any assets that you can spare, the money that you can gain from selling these valuables can help alleviate you from the lump sum sitting on your credit cards. Take to digital marketplaces, such as eBay or Craigslist, if you have any jewelry, furniture, or electronics that you are willing to part with. If you have multiple TVs, laptops, antique furniture that you have tucked away in storage, or an old necklace that you never wear, it may be best to see how much money you can earn by selling them to a new owner.

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Posted on in Credit Score

Texas bankruptcy attorney, TX chapter 17 lawyer,The American Dream is the belief that anyone can succeed in life as long as they work hard and persevere. For many, success includes purchasing and owning their own home. The process of buying a home can be a confusing process and includes many financial and legal procedures. For those who have gone through bankruptcy at some point in their lives, purchasing a home can be even more difficult and confusing. There may be limitations to how much you can borrow from a lender or how soon you can buy a home, but it is not impossible.

Check Your Credit Report

Before you begin to apply for mortgages, you should pull a copy of your credit report. Your credit report will contain detailed information about your credit history, including your borrowing history and information about your bankruptcy. You should carefully look over this report to make sure that everything is correct on the report and that there are no mistakes that could make your report look more unfavorable than it really is.

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TX bankrtupcy lawyerOne of the biggest worries people have when they go to file for bankruptcy is what that will mean for their credit score. There is a lot of confusion surrounding bankruptcies and how they affect your credit. While it is true that they do negatively impact your credit score, it is not nearly as bad as some have let people believe. There is no one answer to how your bankruptcy will affect your credit score. It is a combination of what your credit score was before your bankruptcy and what appears on your credit report. Each situation is different and it is nearly impossible to say how a bankruptcy will affect your credit score.

Effects on Your Credit Score

While there is no simple way to tell how a bankruptcy will affect your credit score, FICO, one of the nation’s leading credit reporting bureaus, has released information on how bankruptcy and other credit mistakes could affect your score. According to FICO, those with higher credit scores before bankruptcy typically lose more points after a bankruptcy, while those with lower credit scores lose fewer points. Despite the difference in the number of points that the score drops, both people with high and low credit scores will have credit scores that end up in the same vicinity.

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Texas bankruptcy attorney, Texas bankruptcy lawyer, One of the first questions most people ask when considering the bankruptcy option is, “How badly will this impact my credit score?” For many, this fear becomes large enough that it prevents any action, whatsoever. In fact, when surveying any portion of the population, most people agree that the lasting impact on their credit rating is to blame. It is true that filing for bankruptcy will remain on your credit report for up to ten years; however, there are many factors to consider before determining whether bankruptcy is or is not the right solution for you.

The Impact Does Not Last for Ten Years

If you file for Chapter 13, bankruptcy will only remain on your credit score for seven years; Chapter 7 is ten years. However, with each year that passes, the impact bankruptcy has on your credit report diminishes. Recent activity influences your score far more significantly than a negative history. After filing, keep up with your budgetary plan, and you will successfully rebuild your credit quickly.

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