Boca Raton Bankruptcy Lawyer

TCredit Reports

Consumers have been taught and trained to equate the contents of a credit report with worthiness for credit. The two, however, are not equal. A credit report may show that you have made every payment necessary on time since you started making payments; however, you may not be worthy of more credit because the amount of credit that you already have can never be paid back.

A credit report is a history of how well you have paid things back to creditors as well as how much money you have outstanding in credit. This history can include bankruptcies or delinquencies.

Bankruptcy discharge, like in Chapter 7 bankruptcy, does not erase the creditors on your pre-bankruptcy payment history. The creditors will still appear, the amount owed to them will show “zero.” Bankruptcy, under federal law, can show up on your credit report for up to 10 years after the case is filed.

If you file for bankruptcy but voluntarily dismiss it before a discharge occurs, the credit reporting agency is required to report both actions. If they do not show that you voluntarily dismissed the case, you can challenge their report of your credit.

After bankruptcy, an individual should be seen as being more credit worthy. This is because the old debts have been discharged which means they can no longer place demands on future income. This frees the formerly bankrupt individual the chance to start fresh and re-build his or her credit. The former debtor should be able to get back on his or her feet. After bankruptcy, it is the debtor’s job to make sure his or her credit built in a way that is beneficial.

If you are in a tough spot due to the creditors constantly calling you and are considering bankruptcy, contact the Boca Raton chapter 7 bankruptcy lawyers of Klein Attorneys at 561-353-2600 to discuss your situation and to determine your legal options.