• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

The Wright Firm, LLP

Bankruptcy Lawyers & Counselors

(972) 353-4600

  • Home
  • About Us
  • Chapter 7
  • Chapter 13
  • Contact Us

FILING BANKRUPTCY MAY IMPROVE YOUR CREDIT RATING

iStock_000015410757XSmall-297x300

Many people do not file bankruptcy because they fear that it will ruin their credit score.  The reality is that by the time most people start thinking about filing bankruptcy, they already have a poor credit rating, and for those people, filing bankruptcy may in fact improve their credit rating.

There are several reasons why debtors who file Chapter 13 bankruptcy may notice that their credit rating improves soon after filing bankruptcy.  First, Chapter 13 bankruptcy reorganizes debts through a plan that allows repayment of a portion or all of the person’s debts in a way that they can afford.  By making payments on time, debtors begin to improve their credit score.  Second, many debtors file Chapter 13 bankruptcy in order to stop foreclosures.  A Chapter 13bankruptcy filing looks much better on a credit report than a foreclosure.  It indicates to creditors that the debtor is trying to repay their mortgage arrears, rather than simply defaulting on their mortgage loan.

 

Chapter 7 bankruptcy will usually improve a debtors credit rating as well.  Chapter 7 bankruptcy cases are generally completed within four or five months after filing the case.  After the debtor receives a discharge, their credit report is largely wiped clean, and the records of unpaid debts and late payments are removed from their credit report.

 

If your goal is to improve your credit rating, bankruptcy should be considered.  I speak with dozens of people each month about their financial situation, and for many of them bankruptcy is not the best choice.  Everyone’s financial situation is different, and it is important to consult a competent bankruptcy attorney before deciding to file bankruptcy.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Tell Us About Your Case

Categories

  • The Wright Firm
  • Dallas Bankruptcy Attorney
  • Dallas Bankruptcy Lawyer
  • Dallas Bankruptcy
  • Lewisville Bankruptcy Lawyer
  • Denton Bankruptcy Attorney
  • Denton Bankruptcy Lawyer
  • Bankruptcy
  • Frisco Bankruptcy Attorney
  • Chapter 13 Bankruptcy

Recent Posts

  • Will I lose my Coronavirus Rebate if I file bankruptcy?
  • (COVID-19) Need a Texas Bankruptcy Attorney?
  • “I’M IN CHAPTER 13 BANKRUPTCY. WHAT HAPPENS TO MY TAX REFUND?”
  • About
  • A funny story from the world of credit…

Recent Comments

    Archives

    • April 2020
    • August 2016
    • July 2016

    Categories

    • 1099
    • 11 U.S.C. 1326(a)(1)
    • 11 U.S.C. 522(f)(1)
    • 11 U.S.C. 525(b)
    • 11 U.S.C. Sec. 524
    • 1325(b)
    • 341 Meeting
    • 707(b)(2)
    • Adequate Protection
    • After Bankruptcy
    • alimony
    • American Bankruptcy Institute
    • Automatic Stay
    • Bankruptcy
    • Bankruptcy Attorney
    • Bankruptcy Chapter 11
    • Bankruptcy Code
    • Bankruptcy Dismissal
    • Bankruptcy Estate
    • Bankruptcy Exemptions
    • Bankruptcy Filings
    • Bankruptcy Fraud
    • Bankruptcy Law
    • Bankruptcy Myths
    • Bankruptcy Q&A
    • Bankruptcy Statistics
    • Car
    • CARES Act
    • Chapter 11
    • Chapter 11 Bankruptcy
    • Chapter 13
    • Chapter 13 Bankruptcy
    • Chapter 13 payment plan
    • Chapter 13 Title 11 United States Code
    • Chapter 7
    • Chapter 7 Bankruptcy
    • Chapter 7 Title 11 United States Code
    • charged Off Debts
    • charitable contributions
    • child support
    • Co-Debtor
    • College Students
    • Confirmation
    • consumer bankruptcy
    • Consumer Debt
    • Coronavirus
    • Coronavirus Bankruptcy
    • Covid-19
    • Credit and Bankruptcy
    • Credit Card
    • Credit Card Debt
    • Credit Card Fraud
    • Credit Card Negotiation
    • Credit Counseling
    • Credit Counseling Requirement
    • Credit Crunch
    • credit rating
    • Credit Repair
    • credit repair companies
    • Credit Repair Company
    • Credit Report
    • credit risk
    • credit score
    • credit union
    • creditor
    • Creditor meeting
    • Creditors
    • cross-collateralized
    • Dallas Attorney
    • Dallas Bankruptcy
    • Dallas Bankruptcy Attorney
    • Dallas Bankruptcy laws
    • Dallas Bankruptcy Lawyer
    • Dallas Lawyer
    • Darby v. Time Warner Cable
    • Debt
    • Debt and Tax Relief
    • debt collection scams
    • Debt Collectors
    • debt consolidation
    • Debt Settlement
    • Debt Settlement Company
    • Debtor
    • Debtor Education
    • Denton Bankruptcy
    • Denton Bankruptcy Attorney
    • Denton Bankruptcy Lawyer
    • DFW Metro Bankruptcy
    • Disabled Veteran
    • discharge
    • Discrimination
    • Divorce and Bankruptcy
    • domestic support obligation
    • Economic Recovery
    • Estate
    • Fair Credit Reporting Act
    • family member debt
    • FCRA
    • Federal Exemptions
    • File a Claim
    • Filing Bankruptcy
    • First Appointment
    • Foreclosure
    • Fort Worth Attorney
    • Fort Worth Bankruptcy
    • Fort Worth Bankruptcy Laws
    • Fort Worth Lawyer
    • Frisco bankruptcy
    • Frisco Bankruptcy Attorney
    • Frisco Bankruptcy Lawyer
    • Garnishment
    • Government Shutdown
    • high-profile bankruptcies
    • Homeowner
    • Homestead
    • house
    • in personam
    • in rem
    • Incolvent
    • Income Tax Liability
    • Individual Tax Number
    • Insolvent
    • Internet Crime Complaint Center
    • Introduction to Your Lawyer
    • IRS
    • Irving Bankruptcy
    • Irving Bankruptcy Attorney
    • Irving Bankruptcy Lawyer
    • Joint Debtor
    • Judgment
    • judicial estoppel
    • Judicial lien
    • Late Payments
    • lease new vehicles
    • Lewisville Bankruptcy Attorney
    • Lewisville Bankruptcy Lawyer
    • Lien
    • Loan
    • loan documents
    • Loan Modification
    • Loan Modifications
    • Loans / Mortgages
    • Making Home Affordable Modification Program
    • Managing Your Finances
    • Marriage and Bankruptcy
    • Means Test
    • Medical Bills
    • mortgage
    • mortgage loans
    • Motion to Dismiss
    • Nathan Graham
    • Negotiation
    • NOI
    • non-dischargeable debt
    • nondischargeable
    • Nonexempt Property
    • North Texas Bankruptcy
    • Notice of Intent to Dismiss Case
    • Notice of Rescission
    • Objection to Confirmation
    • Pay Day Loans
    • Personal Bankruptcy
    • Plano Bankruptcy Attorney
    • Plano Bankruptcy Lawyer
    • procrastinator
    • Proof of Claim
    • Property
    • Reaffirmation Agreement
    • Reaffirming the debt
    • redeeming secured property
    • refund
    • Repossession
    • Retirement
    • Right to Sue
    • Rule 1016
    • Rule 3002
    • Schwab v. Riley
    • Section 547
    • Secured creditor
    • secured debt
    • security deposit
    • Settlements
    • Signs to File Bankruptcy
    • spousal maintenance
    • Stimulus Check
    • Strategic Default
    • Student Debt
    • Student Loan
    • student loan debt
    • Student Loans
    • Sub-prime mortgage
    • Supreme Court
    • tax liability
    • tax refund
    • Tax-debt garnishment
    • Texas Bankruptcy
    • Texas Exemptions
    • Texas Homestead Exemption
    • The Bankruptcy Code
    • The CARD Act
    • The Wright Firm
    • Tithing to Church
    • TRCC
    • Trustee
    • U.S. citizen
    • U.S. Trustee Program
    • Unemployment
    • Unsecured Creditor
    • Unsecured Debt
    • Utility Services
    • Vicarious liability
    • Voluntary Dismissal
    • Wages Garnished
    • Ways to file Bankruptcy

    Meta

    • Log in
    • Entries feed
    • Comments feed
    • WordPress.org

    About Bankruptcy

    • Bankruptcy Team
    • Chapter 7 Bankruptcy
    • Chapter 13 Bankruptcy
    • When Not To File For Chapter 7
    • Bankruptcy Myths

    About This Site

    • Blog
    • Frequently Asked Questions
    • Bankruptcy Glossary
    • Articles | Resources
    • Locations

    Our Sites

    • The Wright Firm, L.L.P.
    • Splitsville Texas
    • No-Frills Divorce
    • The Wright Firm, L.L.P. Weblog
    • Bankruptcy Blog
    • Wright Probate & Estate Services

    LEWISVILLE OFFICE

    1760 South Stemmons Freeway, Suite 100
    Lewisville, Texas 75067
    Phone: 972-353-4600
    Fax: 972-353-4602

    DENTON SATELLITE LOCATION*

    1308 Teasely Lane, Suite 119
    Denton, Texas 76205
    Phone: 940-387-5300
    Fax: 888-548-1138
    * Satellite Locations are available by appointment only.

    FRISCO OFFICE

    7000 Parkwood Blvd. Suite E300
    Frisco, Texas 75034
    Phone: 972-712-7555
    Fax: 972-712-7556

    TARRANT SATELLITE LOCATION*

    5601 Bridge Street Suite 300
    Fort Worth, Texas 76112
    Phone: 972-353-4600

    DALLAS OFFICE

    Campbell Center II 8150 N. Central Expressway Suite 775
    Dallas, Texas 75206
    Phone: 469-635-6900
    Fax: 214-780-9797

    We are a debt relief agency. We are attorneys who help people file for bankruptcy relief under the Bankruptcy Code.

    © 2023. The Wright Firm, L.L.P. All rights reserved.   ·   Articles | FAQs | Glossary