Bankruptcy and Credit Rating

Pennsylvania Bankruptcy Attorney | Bucks County Lawyer

Bankruptcy and Credit Rating

If your debt has reached the point of no return and you've decided to file for bankruptcy, Pennsylvania bankruptcy attorney John M. Kenney can help you get through the process as painlessly as possible. Mr. Kenney has been helping people successfully resolve bankruptcy and credit rating issues since 1983, and has the knowledge and skills necessary to ensure that you are legally protected during this vulnerable time.

Most people beieve that filing for bankruptcy will have a negative impact on their credit rating. Exactly what that impact will be, however, will depend on several factors, including:

  • Type of bankruptcy - Chapter 7 or 13
  • Income
  • Amount of debt
  • Type of debt (e.g. credit card, mortgage, car loan, etc.)
  • Timeframe of payment plan

Each of these elements has pros and cons. Filing for a Chapter 7 bankruptcy, for instance, will discharge all of your unsecured debt without requiring you to make a payment plan. The downside is that your car and home can be seized and sold in an effort to pay off your debt, and the bankruptcy will stay on your credit report for up to 10 years.

Credit Scores: Getting Down to Points

Regardless of whether you file for a Chapter 7 or Chapter 13, you most likely will see an increase in your credit rating.  Part of the reason for this is your debt to income ratio decreases thereby increasing your credit score and credit rating.  Whether your FICO score is high or low going into your bankruptcy, Pennsylvania attorney John M. Kenney will carefully evaluate your case and take every possible measure to minimize the damage to your credit rating.

When to File for Bankruptcy

Even though filing for bankruptcy will seriously hurt your credit rating, it can actually protect you from total devastation. Once you file, your creditors are legally forbidden to continue to try to collect on your debt. They cannot persist with harassing phone calls, garnish your wages, repossess your car or foreclose on your home. And if you succeed in securing a Chapter 13 payment plan, you may not have to surrender your car or your home at all.

Because bankruptcy laws are complex, you need an attorney who can help you understand when and how to file. The longer you wait to obtain legal advice on your case, the worse the effects of your bankruptcy are likely to be.

Bankruptcy lawyer John M. Kenney offers free consultations during which he takes the time to answer all his guests' questions. He will listen carefully to your circumstances and concerns and provide you with the personal attention you deserve. To schedule a free consultation regarding your Pennsylvania or New Jersey bankruptcy case, please call (215) 547-3031, email jmk@jkenneylaw.com, or fill out and submit our online "Contact Us" form.