Credit Rating After Bankruptcy


One of the biggest fears that people have when they contact a bankruptcy attorney is the issue of their credit rating after declaring bankruptcy. In fact it is a main reason that people refuse to file for bankruptcy even when faced with a mountain of debt.

If you are unable to meet your financial obligations you may find yourself slipping into the downward spiral of debt, creditors knocking at your door and the an ever worsening credit score. If possible, you need to avoid getting into a lawsuit and causing even greater damage. A lawsuit against may be more damaging to your credit score and reputation than declaring bankruptcy.

Don’t Ignore Debt

The first thing that you must not do is ignore the problem; it will not go away if you behave like an ostrich and stick your head in the sand. Ignoring your creditors will just make them take steps to ensure that they have you in a chokehold if you gain employment. If you face judgments, you will likely not be able to get a loan at all. If you find yourself facing a lawsuit, the only way to protect your assets is to contact a bankruptcy lawyer and file for bankruptcy to protect your future earnings.

If you’re unemployed, having a damaged credit rating may affect your future employment chances as many employers are now checking on the status of potential employees. If you have lawsuits and judgments against your name, you may not be considered an acceptable risk in any way. Getting out of a lawsuit is an intricate legal procedure and creditors are not known for their patience or largesse when dealing with consumers.

Things tend to change though when you start working with a bankruptcy lawyer. In the first place, your creditors are not allowed to contact you in any way once your bankruptcy is filed. All lawsuits and foreclosure proceedings are halted immediately until your bankruptcy is finalized and most important of all – you have a Chicago bankruptcy attorney on your side to deal with all your creditors and help you face the future again.