Bowen Ten Cardani, PC

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Leaning more about credit scores and bankruptcy

Far too many people in Virginia struggle with the devastating impact of overwhelming debt that seems impossible to repay. The accumulation of late fees, interest charges and other costs can leave individuals searching for a solution to their financial crises. While bankruptcy can offer hope for the future and an ability to escape from these unpayable debts, many people refrain from filing out of fear of what bankruptcy could mean for their future financial lives and health.

The impact of a bankruptcy on a person's credit report is substantial. It can cause a credit score to lower by 200 points or even more. However, this impact is not permanent, and a clear end date is in sight. While it is commonly believed that all bankruptcy information remains on a credit report for at least 10 years, in reality, only a Chapter 7 bankruptcy remains on a report for that period. All other bankruptcy information, including a filing for Chapter 13 bankruptcy or the details of accounts discharged remain on a credit report for seven years only.

Furthermore, a person who files for bankruptcy can rebuild his or her credit during that period and earn a positive credit score during that time. By building their credit through secured credit cards that are based on a security deposit held by the card's issuer and other means, people who file for bankruptcy can build up positive credit that will boost their scores within four to five years.

There are multiple options that people can pursue when they are seeking relief from overwhelming debt. A bankruptcy lawyer can explain all the available options, including Chapter 13 bankruptcy, which allows individuals to reorganize their debt even if they have incomes that are too large for a Chapter 7 filing. An attorney can provide counsel and representation throughout the process of developing an affordable payment plan and building a new financial future.

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Bowen Ten Cardani, PC

Richmond Office
3957 Westerre Parkway, Suite 105
Richmond, VA 23233

Toll Free: 866-601-7371
Phone: 804-767-6850
Richmond Law Office Map

Ashland Office
9410 Atlee Commerce Blvd, Suite 2
Ashland, VA 23005

Toll Free: 866-601-7371
Phone: 804-767-6850
Ashland Law Office Map

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