How Will Bankruptcy Affect My Credit? (801) 903-2616 - Arnold & Wadsworth
Channel: Arnold & Wadsworth Attorneys At Law
Date: 14/02/2014

Utah Bankruptcy Attorney http://www.arnoldwadsworth.com/

"My name is Matt Wadsworth. I am a bankruptcy attorney at Arnold & Wadsworth and in the next few minutes I am going to discuss with you the credit risks and impact of filing bankruptcy. A bankruptcy is supposed to be on your credit report for 10 years I believe according to the credit bureaus. That doesn't mean it destroys you. And in fact in 6 months to a year to two years your credit report or FICO score which is what 99.9% of creditors use to judge your credit worthiness will completely rebound and be even better, far better than what it was before. And so when I get this question asked to me "How is it going to affect your credit"? I think what people really want to hear about is: "What's it going to stop you from getting? What's it going to prohibit you from getting? How is it going to hurt you"? And really the only type of product that it may prohibit you from obtaining is a house loan. And that's only for three to five years depending on what Fenny Mae and Freddie Mac decide. It is really just an underwriting guideline okay? And I believe it's just three or five year's right now. And the proper person to actually ask that question tois a loan officer because it changes all the time and so that's who you'd really want to address with that. But any kind of debt: car loans, RC Willey, anywhere else, honestly, they are never going to know about it. It is never going to come up, nothing. It will never affect you in any regard. And I would say on a side note that this is the primary reason why bankruptcy is far superior than any debt consolidation because debt consolidation really just destroys you for a period of time and it is usually for 5 to 10 years. You are going to be on a plan for a significant period of time. During that entire period of time your credit is going to be absolutely murdered. It will not rebound. All of your creditors, even the ones that you are current on, will put you automatically in default the moment you enter in one of those programs. Then it will take another few years for your credit score to rebound. So if you file Chapter 7 Bankruptcy it happens right here, it happens right now and in a year and six months you're back on your feet ready to go. And for most of my clients that file a Chapter 7, they are getting blitzed with all types of credit opportunities and that isn't just after they've receive their discharge four months away that is the day after they file because they actually, and you will be, one of the most credit worthy individuals in the economy. And that is just the realty of it. If you are in a situation where you are being garnished or you are about to be garnished, or your car is about to be repossessed, or you are in the middle of a foreclosure or about to go into a foreclosure. Please give me a call anytime. We are happy to answer any questions that you may have and we do give free consultations."

Arnold & Wadsworth Salt Lake City Office
510 S 200 W, #200
Salt Lake City, UT 84101
(801) 903-2616

298 24th Street
Suite #230
Ogden, UT 84401
801.475.0123


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