In terms of a person’s credit score, there is generally not a significant difference between the effects of filing for Chapter 7 versus Chapter 13 bankruptcy, as both will indicate that a person is a risk in terms of borrowing money or extending lines of credit.
However, when an individual lender looks at a person’s credit report, Chapter 13 cases may viewed more favorably than Chapter 7 cases because they can indicate that a borrower made a good faith effort to repay his creditors (rather than seeking total discharge of his debt).
Recovering from the Credit Impacts of Chapter 13 Bankruptcy
While the potential credit impacts that bankruptcy can have may be distressful, it’s critical to underscore that:
➡ Filing for bankruptcy can give people a financial fresh start and can prevent borrowers’ credit from nose diving when they are unable to pay their debts (as this is worse than the credit impacts of bankruptcy).
➡ There are some steps that borrowers can take after bankruptcy to improve their credit score and their overall financial standing.
Specifically, some of the credit recovery steps that borrower can take after a bankruptcy can include:
➡ Living on a budget so they are able to set aside money to make their monthly debt payments.
➡ Paying off all remaining debts (and making payments on these debts on time).
➡ Refraining from acquiring new debt if and when possible.
➡ Avoiding carrying a balance on any credit cards they may still have open.
The Denver Bankruptcy Lawyer at Lindquist-Kleissler & Company, LLC Is Here to Help You
If you are buried in overwhelming debt, Denver Bankruptcy Lawyer Arthur Lindquist-Kleissler can help you determine your best options for resolving your financial issues.
For more than 34 years, Mr. Lindquist-Kleissler and the other legal professionals at Lindquist-Kleissler & Company, LLC have been providing both individuals and businesses with the highest quality of legal services when it comes to debt relief and bankruptcy. From simple to complex bankruptcy cases, Mr. Lindquist-Kleissler can always be relied on to:
➡ Provide personalized service to each of his clients
➡ Explore non-traditional options for debt relief
➡ Help them resolve their financial issues and challenges as favorably and efficiently as possible.
Contact Us for a Free Case Evaluation
For a free 30-minute consult and a free bankruptcy packet, contact us by calling (303) 691-9774, or email us using the form on this page. You will pay nothing up front to obtain trusted, professional advice regarding your case and your options.
From our office in Denver, Arthur Lindquist-Kleissler represents clients throughout the Great Denver Metropolitan area and Colorado, including (but not limited to) Aurora and Arapahoe County.