Top Ten Questions (continued)
Question 8.
What are the disadvantages of Bankruptcy?
The fact that you declared bankruptcy will appear on your credit report. Bankruptcy will stay on your credit report for up to 10 years from the date of filing, but given current credit reporting standards, a Chapter 13 will only remain on your credit report for seven years.
Keep in mind that many people already have severely damaged credit before they file for bankruptcy. Many people report that they are surprised by the easy availability of credit after bankruptcy. We will work with clients after bankruptcy to ensure that their credit reports are accurate. The result is often an improved credit score which facilitates access to credit on favorable terms after bankruptcy. Read more about this new service here.
Note: Filing bankruptcy will not stop you from getting student loans in the future that are guaranteed by the government (such as the Stafford, Perkins, and PLUS loans that most students get).
There are various other exemptions under Massachusetts law and federal non-bankruptcy laws. Some examples include: 401(k)’s, certain retirement accounts and death benefits, social security benefits, veterans’ benefits, unemployment and workers’ compensation benefits, and certain personal property and pensions.
Free Credit Repair After Bankruptcy for Clients
After your bankruptcy case, some creditors will nonetheless continue to report to the credit reporting agencies that you owe a debt. After you receive a bankruptcy discharge, however, you no longer owe discharged debts. Reporting inaccuracies like this can harm your credit and prevent you from building up your credit score after bankruptcy.
When a client receives a bankruptcy discharge, I ask them whether they are interested in obtaining copies of their credit reports and taking the steps necessary to ensure maximum accuracy. If a client chooses to proceed, we provide the client with the information they need to dispute any inaccuracies due to the bankruptcy. If the inaccuracies are not corrected because the credit reporting agencies or your former creditors do not handle your dispute in the right way, I will discuss with the client the possibility of filing suit to remedy the situation. After a successful settlement or verdict under this law, you would usually receive money damages and have the incorrect item removed from your report. The attorney’s fees in a successful settlement or verdict are paid for by the defendants.