The thought that filing for bankruptcy will ruin a person's credit forever is one of the common bankruptcy myths. This is not true and it is very possible to repair your credit after filing for bankruptcy. When you file for bankruptcy, it does go on your credit report but it does not stay on there. Depending on the type of bankruptcy that you file for it may only be on there for a few years. Even so, it is possible to rebuild credit while your bankruptcy is on the report. Filing for bankruptcy is only one factor on a credit report, other factors in a credit score include:
- The amount of debt you have
- Debt to income ratio
- Paying bills on time
- The amount of accounts you have open
- The amount of times you have been denied for a credit card
- Bankruptcy, foreclosure, garnishment
Even for the years the bankruptcy is on your report, paying bills on time can help boost your credit score. Generally, people have low credit not because of bankruptcy, but because they have not paid their bills or debts on time. Bankruptcy allows a person to discharge of all or some of their debts, giving them a fresh start. This allows a person to get back on their feet and hopefully stay on top of their bills in the future. If you can pay any new debts and bills after bankruptcy, you can watch your credit improve. Looking for a lawyer for help in your bankruptcy case in Wayne County, MI? If you have any other questions regarding your credit and the effect that bankruptcy has, feel free to contact a Wayne County bankruptcy lawyer from Bryant, Logan, Wheeler Law Group, PLC. We are familiar with this process and can guide you through your bankruptcy.