Bankruptcy Doesn’t Destroy Your Credit
As one of the most prevalent myths surrounding bankruptcy, many filers mistakenly worry that bankruptcy will ruin their credit. It is important to remember, however, that bankruptcy will affect your credit but will not destroy it. To begin with, bankruptcy will continue to appear on your credit report long after you file for relief—Chapter 7 will show on the report for 10 years, while Chapter 13 will appear for 7 years after you file. Regardless, many borrowers actually have more borrowing power after going through the process than they did beforehand.
Bankruptcy’s Affect on Your Credit
While bankruptcy will almost certainly affect your credit, your credit will not be destroyed by filing for bankruptcy. Generally speaking, bankruptcy is likely to affect your credit in the following ways:
- Once your debt has been discharged, creditors will see you with less risk
- Any loan you take out will carry a much higher interest rate
Our Cedar Rapids legal team understands just how complex the process of bankruptcy can be; we will do everything we can to help you make the best decision you can under your circumstances.
Consult with a Bankruptcy Attorney in Cedar Rapids
If you are worried about filing for bankruptcy, you should speak with one of the Cedar Rapids bankruptcy attorneys at Hong Law, PLC, so that any decision you make about your financial future will be as informed as possible. To discuss your financial situation with one of our Cedar Rapids bankruptcy attorneys, please call our Cedar Rapids offices at (319) 294-5853 today.
Coralville, IA 52241
Phone: (319) 354-1804
Map to our Coralville Office