Can Filing for Bankruptcy Help You Get Credit?

Bankruptcy May Make It Easier to Obtain Credit

Can Filing for Bankruptcy Help You Get Credit?There’s a common misperception that filing for bankruptcy will reflect negatively on your credit and make it more difficult for you to finance anything. In fact, filing for bankruptcy often leads potential creditors to view you as a safer risk. How can that be? It seems counterintuitive. Here’s why.

You’re Taking Positive Steps to Resolve Your Financial Problems

Credit scores aside, the simple act of filing for bankruptcy protection sends a message to potential creditors that you’re paying attention to your financial problems and taking measures to improve your situation. Unfortunately, far too many people dig the financial hole even deeper by borrowing more money or getting even further behind on their financial obligations.

If you qualify for a Chapter 7 bankruptcy filing, you’ll be able to permanently discharge some of your debts, which can leave you with more discretionary income and make you more attractive to potential lenders.

Your Credit Score Can Go Up Fairly Quickly

A bankruptcy filing will lead to an immediate drop in your credit score, but studies show that, if you avoid further financial problems, your score can rebound quickly, often surpassing your pre-filing score within a year. If you’ve made late payments for months or even years, your score is likely to be low anyway.

A study by the Federal Reserve Bank of Philadelphia found an increase in credit scores for individuals who filed Chapter 7 or Chapter 13 bankruptcy petitions. Those debtors who filed for Chapter 7 protection saw their Equifax score go from approximately 540 to 620 just six months after filing. Those seeking protection in Chapter 13 saw a similar rise, from 535 to 610.

Contact an Experienced Rockwall, Texas, Bankruptcy Attorney

At the Law Offices of Carrie Weir, all potential clients are entitled to a free initial consultation. I am currently communicating with clients by phone, text message, and videoconference. To arrange an appointment, contact my office online or call 972-772-3083. I handle Texas personal bankruptcy filings in Rockwall County, Collin County, Dallas County, Hunt County and the surrounding counties.

Speak Your Mind


Call Rockwall bankruptcy lawyer Carrie Weir at 972-772-3083 or fill out the contact from below for a free, confidential consultation to discuss your options.

How Can I Help

Complete the contact form
and I will email you.

  • This field is for validation purposes and should be left unchanged.

Consumer Bankruptcy

Can I keep my car? Will bankruptcy stop a foreclosure? Will I ever be debt-free again? How will I ever pay these medical bills?

Read More

Chapter 7 Bankruptcy

If you want to stop creditor harassment, eliminate repossession debt, stop garnishments and keep your house, and car, a Chapter 7 bankruptcy could help.

Read More

Chapter 13 Bankruptcy

Are you in jeopardy of losing your house? Are you making good money but everyone is asking for payment right now? Do you want or need to stop collections?

Read More