While filing for bankruptcy puts an “automatic stay” on your debt to keep creditors from collecting, it creates a major mess for your credit status going forward. While the stay is in place, creditors cannot garnish your wages, deduct money from your bank account, or go after any secured assets.
While the move can eliminate credit card debts, medical balances & personal loans, it will not eliminate all of your debts. You’ll still owe back taxes, student loans and more. Even worse, a bankruptcy can stay on your credit report for up to 10 years, decreasing your credit score by anywhere from 160 to 220 points depending on the type of bankruptcy chosen.
By filing a Chapter 7 or Chapter 13 bankruptcy, two of the most common options, your credit rating will dip from a good score to a fair or poor score overnight. Choosing bankruptcy will make it much more difficult to qualify for a mortgage loan, auto loan, or credit cards. The primary remedy for this is time, although there are measures that the credit repair experts from True Credit Repair can provide to help you rebound ASAP from a bankruptcy filing in South Florida.
At True Credit Repair, we handle much more than bankruptcies. We also help customers repair their credit in the wake of charge-offs, student loan debt, late payments, repossessions, foreclosures, and much more. We can help you, too.
Types of Bankruptcies in South Florida by TrueCredit.Repair
True Credit Repair has a long, proud history of helping South Florida customers rebound from bankruptcies and get their finances, as well as their lives, back in order. Some of the bankruptcy filings where we can help include:
- Chapter 13: Under this plan, the bankruptcy itself and the debts associated with the bankruptcy will be displayed differently on your credit report. A Chapter 13 bankruptcy will stay on your credit report for up to 7 years and discharged debts will also stay on the report for up to 7 years after they are discharged.
- Chapter 7: Under this plan, the bankruptcy will stay on your credit report for up to 10 years. In general, discharged debt drops off a credit report after 7 years.
- Chapter 11: Typically reserved for businesses, a Chapter 11 bankruptcy involves a reorganization or restructuring for the company without liquidating the existing assets. A Chapter 11 debtor usually reorganizes the business, keeps it alive, and repays creditors over time. Virtually anyone can file for Chapter 11 bankruptcy, while many small businesses are ineligible to file for Chapter 13 bankruptcy.
Let True Credit Repair to Help with Your Bankruptcy
At True Credit Repair, our goal is to help customers repair their credit status and get back on their feet financially. For years, our credit repair professionals have been helping customers rebound from bankruptcies, collections, repossessions, foreclosures and much more. When you need our services, Contact Us online or give us a call at 888-407-7747.