| FUTURE CREDIT - One of the most frequent questions I receive as a Bankruptcy lawyer, is "How will Bankruptcy affect my future credit?" It is true that credit records are very important and getting more important every day. Many employers have started requesting credit reports, and certainly credit is necessary to purchase a house and in most cases a car. That is why I usually don't recommend filing bankruptcy if you have good credit. If you can avoid "ruining" your credit, you certainly should! Bankruptcy will bring down the infamous FICO credit score by at least 100 points immediately.....but sometimes it can raise the FICO score by the same amount. Usually, within a year or so after the bankruptcy is over, and the Discharge is received, an individual's credit score is better than it was than before he or she filed bankruptcy. Most people who seek out the protection of the federal bankruptcy laws are already late on their bills, which affects their credit scores. |
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