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Bankruptcy and Your Credit

Bankruptcy and Your Credit

If you have reached the point where you are close to foreclosing on your home and you have explored all other options, bankruptcy might be able to help. In many cases, filing Chapter 7 bankruptcy can delay the foreclosure by several months. Some people may also be able to save their home by filing for Chapter 13 bankruptcy. The type of bankruptcy you will need to file for is determined on a case by case basis.

Although filing for bankruptcy may be able to keep you in your home, it’s important to know what effects it will have on your credit score and credit report. You may be wondering when you will be able get another mortgage, car loan or credit card. The damage to your credit score post-bankruptcy is determined largely in part by the strength of your credit score prior to the filing.  If you had a high credit score, it will be impacted much more noticeably than if your credit score was already low.

It can take up to ten years for bankruptcy to be removed from your credit report, but the good news is that there are several steps you can take to start rebuilding your credit right away. One of the most important things to do is make all of your payments on time. You also need to keep your debt load low, especially as compared to your available credit.  And when you are ready, get a credit card, make small charges, and pay the bill off in full every month.

If you feel like bankruptcy may be the best way for you to save your home, it’s imperative that you consult with an experienced bankruptcy and foreclosure attorney prior to tackling such a difficult and stressful process on your own. At Korte & Wortman, P.A., we take foreclosure defense cases very seriously. Whether you are planning to file for bankruptcy to save your home or are exploring other options, we are committed to helping you every step of the way. We understand that nothing is more debilitating to a family than losing their home. It is by far most families’ biggest asset and the one that provides the most stability.

Korte & Wortman, P.A. is a law firm specializing in defending those injured through foreclosure. Based in West Palm Beach, our firm represents clients throughout the state of Florida and across the eastern seaboard. With expertise in all aspects of real estate law, the attorneys at Korte & Wortman also represent clients in real estate closings, property tax appeals, condominium and HOA disputes and landlord-tenant disputes. To learn more, visit www.foreclosurefactor.com, or call 561-228-6200.