Reed Law Firm, P.A. is a federally designated debt relief agency. We proudly help people file for bankruptcy relief under the U.S. Bankruptcy Code.
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Giving You Hope For a Debt-Free Future

Will filing for bankruptcy destroy my credit?

Many people mistakenly believe that filing for bankruptcy will permanently ruin their credit. This is not true. While your credit will take a hit after you file for bankruptcy, you may be surprised that the long-term impact on your credit is not as bad as you might think.

Any negative item on your credit report will diminish over time, including bankruptcy. However, your credit score will significantly lower after filing, and the terms for any loan you request will be less than favorable. However, it can take as little as two years to begin to see credit offers that reflect more normal terms. What happens to your credit following a bankruptcy is seen by many as the lesser of two evils, better than defaulting on loans or receiving constant calls from creditors.

Will you be able to get credit after bankruptcy?

One thing you may notice shortly after filing for bankruptcy is you will receive offers for new credit cards. This is because you will currently have very little or no debt and you are not able to discharge any new debts that accumulate for a long period of time. One thing to keep in mind about these offers is that they will have low limits for credit, high interest rates and added charges and fees.

What if you decide to not file for bankruptcy?

Filing for bankruptcy is not an easy decision based on how it will affect your credit standing. But does the alternative provide better hope to get you where you financially want to be? If you were to decide against bankruptcy, you would need to continue to pay your creditors. Missed payments can result in fees and higher interest rates. You may also face extremely high minimum payments. If you end up missing several payments, the creditor may report the account to a credit report agency as a delinquent account. At this point, the creditor may even decide to take legal action against you.

Bankruptcy on your credit report will have an initial impact that can significantly lower your credit score. However, if over time you begin to establish new credit and stay responsible with your finances, you should see an improvement over time.

Remember that your bankruptcy will eventually be wiped off of your credit report. If you currently have many missed payments on credit accounts, or they are already in collections, bankruptcy may be a better option for your future credit than remaining in your current situation.

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Reed Law Firm, P.A.
220 Stoneridge Drive,
Suite 301

Columbia, SC 29210

Phone: 803-726-4888
Fax: 803-726-4887
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Reed Law Firm, P.A.
1807 West Evans Street,
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Florence, SC 29501

Phone: 843-679-0077
Fax: 843-679-0667
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