How to Rebuild your FICA Score
The Effects of Bankruptcy on Aspects of Your Debt and Life
At the Law Office of Robert C. Bruner in Tallahassee, Florida, we have over 20 years of experience handling a wide variety of bankruptcy matters for clients. Our firm strives to ensure that clients understand their rights and options, including the effects the bankruptcy will have on one's life, when considering filing for bankruptcy. For more information on the effects of bankruptcy, please see the sections below or contact our office or call us at 850-270-0016 (toll free at 888-402-6927) to arrange a free initial consultation with a lawyer at our firm.
Effect on Your Credit
It is a myth that bankruptcy further destroys what is usually already bad credit. Actually, bankruptcy is a process through which you can rebuild your credit and FICA score. No matter how much you owe, everyone gets their credit rating reset. After 18 months, you may be able to increase your credit score.
Stopping Collection Actions
By filing for bankruptcy, you are putting an immediate halt to any collection actions that are moving forward against you, including:
- Pending lawsuits
- Wage garnishments
- Foreclosure
- Repossession
Though you may ultimately lose your home or vehicle, or have a wage garnishment or lawsuit reinstated, once bankruptcy is filed, you are protected from those actions until the bankruptcy court can determine how to handle your debts.
The Liability of Co-Signers
The point of having a co-signer on a loan is so that the lender has someone to take action against if the primary debtor stops paying on the loan. Even after bankruptcy is filed, a co-signer may still be liable to pay on the loan. However, this may not be the case in all situations. Our firm can review your situation to determine where liability for the debt falls and if it may be dischargeable in bankruptcy.
Non-Dischargeable Debts
Bankruptcy has no effect on non-dischargeable debts, such as most student loans and child support arrearages. Less than 1 percent of student loans are discharged and that happens only in rare exceptions.
Contact Our Office
To schedule an appointment with a Tallahassee bankruptcy attorney, contact us or call us at 850-270-0016 (toll free at 888-402-6927). We are available to meet with you any day of the week. All initial consultations are free.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
