Many clients are shocked to learn that obtaining credit and rebuilding ones credit score following a bankruptcy filing is very common. An increase in credit score is also very common.
Following a discharge, the debtor is left with minimal debt, if any. The debtor has income coming in (assuming the debtor is employed) with minimal expenses being paid out by the debtor. The debt to income ratio is resolved in favor of the debtor. Further, a debtor cannot obtain another discharge for several more years. Thus, any new debt assumed by the debtor is non-dischargeable for several years.
A lender favors the debtor who has no debt following a discharge, receiving employment income, and is unable to file bankruptcy for several years. The lender knows that the debt is secure from discharge and the debtor can be able to repay. By extending credit to the debtor following a discharge, the debtor can resume borrowing and repaying on the credit line and effectively increase his/her credit score.
Filing for bankruptcy is an important step and a powerful tool to restore ones financial track in a positive direction. Due to the complexities of filing for bankruptcy it is always highly advised to select a qualified attorney who is experienced in bankruptcy law to represent the debtor. Feel free to contact my office to make an appointment to discuss your bankruptcy concerns. I make it my goal to provide each client the dedicated time and experience for his/her bankruptcy concerns.