The Effect of Bankruptcy on Your Permanent Record
The biggest drawback of bankruptcy for most people is the potential effect it has on a credit report. The Law Office of Paul L. Urich recognizes this, and our law firm offers debt reorganization and credit counseling services to help people avoid bankruptcy altogether, if possible. We serve clients throughout the Orlando and Cocoa area, including the cities of Titusville and Melbourne. If your financial situation forces you to file bankruptcy, here is some information regarding its long-term effects.
What is bankruptcy's effect on my credit report?
Bankruptcies remain on credit reports from seven to ten years. While this may prevent you from acquiring significant loans—for a home or car, for example—during this time, it is possible to begin rebuilding your credit immediately after filing for bankruptcy. If you pay your full monthly balance on time and do not apply for too many credit cards, you may see significant improvement in your credit score within as little as two years.
Are there any other permanent records that bankruptcy impacts?
Bankruptcy petitions are public records. However, unless you tell others that you filed bankruptcy, it is unlikely that the information will go on record anywhere other than in court records and your credit report.
Is it possible to strike bankruptcy from my permanent record?
Unfortunately, no. You can file an explanation with the credit reporting agencies briefly describing the events resulting in your bankruptcy. If an account report is inaccurate, you can request they update the record accordingly.
What are the positive effects of filing for bankruptcy?
The preceding information may make bankruptcy sound like a mostly damaging process. While it certainly can have some negative impact on an individual's permanent records, overall quality of life should improve. Ideally, you should experience relief or a complete release from your financial burdens, granting you a much-needed fresh start. By eliminating creditor phone calls, insurmountable payments, and constant threat of repossession or foreclosure, bankruptcy provides a valuable escape for many. To ensure that bankruptcy is the best option for you, discuss the risks versus the rewards in your case with a qualified Orlando bankruptcy lawyer.
Contact The Law Office of Paul L. Urich today
The Law Office of Paul L. Urich, P.A. is a law firm that focuses on bankruptcy and debt reorganization 100 percent of the time. Our Orlando bankruptcy law firm offers low fees and a free initial consultation to residents in the cities of Titusville, Melbourne, and Cocoa. Call us at 888-341-6149 or contact us online today.
