Jeffrey B. Irby
How Long Will a Bankruptcy Appear on My Credit Report?
If you are in debt, you are not the only one. In fact, last year Americans accumulated about $90 billion in retail credit card debt alone. If you are having difficulty getting out from beneath a mountain of bills, you might consider filing for bankruptcy.
At Bankruptcy Solutions, I can help you to decide on whether to file for Chapter 7 or Chapter 13. Once you are feeling more secure, I can teach you how to improve your credit report so that your creditors might view you more favorably.
I proudly serve the needs of clients in the Huntsville area and throughout Jackosn COunty and Northern Alabama.
The Difference Between Chapter 7 and Chapter 13
It is not an easy decision to file for bankruptcy, especially if you are unsure of what it will mean for you in the future. In actuality, there are several kinds of bankruptcy cases. Two common types are Chapter 7 and Chapter 13, and both of them stay on your credit report for 10 years.
Chapter 13 Bankruptcy
In general, a Chapter 13 bankruptcy claim means that you are consolidating all of your debt into one large amount and then paying it down a little at a time over 3-5 years. If you believe that you might be able to tackle your debt this way, I have the experience to help you make it happen.
Filing for Chapter 13 bankruptcy may allow you to keep your secured assets, such as your car or your home. The expectation; however, is that you will continue to make the agreed-upon payments in good faith.
Chapter 7 Bankruptcy
With a Chapter 7 bankruptcy, your credit report will note the bankruptcy and show that you have a zero balance on all of your unsecured debts. However, if you own a vehicle or a home, it may have to be sold to pay some of your creditors.
One key aspect of a Chapter 7 bankruptcy filing is that you can only file for it once every eight years. Additionally, if the Huntsville courts decide that you may qualify for a Chapter 13 payment plan instead, they might not let you have a Chapter 7.
At Bankruptcy Solutions I can take a look at your financial information and evaluate your chances of being granted either a Chapter 7 or a Chapter 13. Based on my years of experience with bankruptcy law, I will likely have other suggestions for you for rebuilding your credit.
Improving Your Credit Report
After you have successfully filed for bankruptcy, you might think about rebuilding your reputation with creditors. However, considering that a bankruptcy stays on your credit report for 10 years, you probably don't know where to start.
When Bankruptcy Solutions takes your case, I will give you access to the credit improvement system, “7 Steps to a 720 Credit Score.” Although it is valued at $1,000, you can qualify to get it for free. The system will provide helpful information, including the following subjects:
- Credit reports and scores
- Quick credit strategies
- Reestablishing credit with card companies
In Alabama, the average credit score is 680. Credit reporters list a perfect score as 850. If you follow the 7 steps, you may be able to stay out of debt and improve your credit rating to well above the average score in the state.
Contact Bankruptcy Solutions About Your Credit Issues
Because bankruptcy is a complicated area of law, it is generally wise to consult with an attorney who focuses on it. At Bankruptcy Solutions, I spend most of my time on Chapter 7 and Chapter 13 bankruptcies. I’m available to assist clients in Jackson County and throughout Northern Alabama. If you contact my office in Huntsville, we can discuss whether either type of bankruptcy is right for you. Then we can talk about rebuilding your credit so that you’ll have a strong credit report in the future.