What is the effect of a bankruptcy or workout on my credit rating?
Each individual or couple has a unique situation. The results of a bankruptcy or workout can only be determined after consultation. We often find people with excellent credit because they have borrowed from credit cards, friends, relatives, and pay day loan companies to make the payments to the companies reporting to credit agencies. If your creditors are aware of your the true picture, your credit rating would be poor. If an individual or couple is in financial difficulty, eventually the difficulty will surface and eliminate their ability to borrow money. A Chapter 7 bankruptcy or a Chapter 13 discharge shows your true credit situation to your creditors, but it allows you to reestablish your credit over the next few years. We generally find people can reestablish their credit by paying their post bankruptcy debts in a timely fashion or maintaining a good work record over a two-year period.
