Perhaps one of your biggest concerns about filing for bankruptcy in Texas is how your decision will impact your credit and thus, your financial stability and ability to secure credit in the future. Fortunately, while bankruptcy will affect your credit, with effort and time, you can make the most of your situation and come out on top. At Christopher Todd Morrison, P.C., we are committed to helping you get out of debt and enjoy financial freedom.
According to the United States Courts, the number of years that your bankruptcy will appear on your credit report is 10. Contrary to what many believe, this notification will not make it entirely impossible for you to secure credit before that term ends. While the notification may affect the amount of interest you are required to pay on certain loans, so long as you have adequate income and are able to show that you can pay your debts on time, many creditors will extend some flexibility.
One thing you will want to be aware of is how your debts are reported on your credit history. Any debts that were included in your bankruptcy should be recorded as having a balance of zero. If they are incorrectly reported and it is showing that you still have outstanding payments, your credit could take a heavy hit. Checking your credit after a reasonable time is important to ensure that your credit history accurately reflects your situation.
When you receive your bankruptcy discharge and begin implementing new habits to improve your credit, you can overcome the impact that a bankruptcy filing may have taken on your credit score. For more information about filing for bankruptcy, visit our web page.