- October 9, 2013
- Posted by: Richard Feinberg
- Category: Credit
The Tampa bankruptcy process can be intimidating to anyone searching for debt relief, but the threat of credit damage is often far more daunting. For many people, the idea of filing for bankruptcy doesn’t seem logical if they want to avoid further damaging their credit. In reality, this line of thinking is brought about by some misconceptions about how the bankruptcy process works and how it can influence credit.
Setting It Straight
One common myth about bankruptcy and your credit is that it damages your credit. The truth is that filing for bankruptcy does not do any additional damage to your credit score; it is the delinquent accounts, high balances and missed payment history that damages your score. In fact, the majority of people actually see an improvement in their score following the discharge of their debt in bankruptcy. By removing the negative payment history and high balances, bankruptcy offers you a clean slate to begin repairing your credit much faster than other debt relief solutions.
Another myth about bankruptcy and credit is that filing for Tampa bankruptcy will prevent you from getting credit in the future. While it is true that a bankruptcy can remain on your credit report for up to ten years, it by no means blacklists you from future credit. In fact, there is an entire industry of lenders that offer credit to post-bankruptcy consumers immediately after completing their case. Although this chance at new credit is promising, you should be warned that not all of these credit offers are the right choice for you so soon after your discharge. Take the time to plan your next line of credit and shop around for the right lender.