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Filing Bankruptcy Doesn't Necessarily Ruin Your Credit

One question I get asked a lot by folks here in South Jersey is what bankruptcy will do to someone's credit.   This is because there are a lot of myths out there about what happens.  People think they will have bad credit for 7 (or 10) years no matter what.

My answer used to be that it is the worst thing you can do.  It will trash your credit, and  for that reason should always be considered as a last resort, but it is not like breaking a mirror, in that the period of time you will be affected by it is not the same for everyone; it depends on what you do to repair it.

However, with the rise and establishment of the FICO score, and what we are learning about how it is calculated, this answer has changed somewhat.  If you have good credit (a score well over 700), then you will take a 100-150 point hit.  But if you already have bad credit, then you do not have much to lose.

Bankruptcy is a last resort, but it can often be the best way to get out from under crushing debt. Find out what is true and what isn't about credit, and take charge of your life after you file by taking affirmative steps to rebuild your score as quickly as possible.  That is the fastest and best way to get the fresh start in life that you need!

If you live in South Jersey and are considering filing bankruptcy, call my office at 856-432-4113 or contact me through this site for a free consultation to discuss your case.

If you are looking for more information about bankruptcy, then download my free book,Top Questions People Ask About Filing Bankruptcy in New Jersey.

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Steven J. Richardson
Bankruptcy, Collections, Student Loan, DUI and Traffic Court attorney in Woodbury, NJ.