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Rumor vs. Fact: The Truths Behind Filing for Bankruptcy

Stockton Bankruptcy attorney, Chapter 13 bankruptcy, Credit repair, Chapter 11, Best bankruptcy attorney, Debt consolidation

It is a common rumor that filing for bankruptcy will ruin your credit forever.  Another is that while filing for either Chapter 7 or 13 bankruptcy, you will not be able to use your credit card, take out a car loan or purchase a home.  The truth is you can buy a car after filing and you can purchase a new home within 1 year. And after your discharge, you will receive credit card offers in the mail.


Your credit can be restored as well as your financial freedom.  The truth is that filing for bankruptcy will affect your credit. However, you can begin rebuilding your credit immediately after bankruptcy. Within a year of filing, many of our clients see increases in their credit scores.  


The important thing is to take the proper steps to repair your credit after filing for either Chapter 7 or 13 bankruptcy. The first and easiest thing to do is obtain a free copy of your credit report. When you receive it, examine the report for errors.  And if you find mistakes, dispute them promptly. In addition to monitoring your credit report, take the following steps to strengthen your financial footing:


  • Be careful and intentional with your finances. Create a manageable budget and stick to it
  • Pay your bills on time
  • Build an emergency reserve. You will avoid using credit cards where you can end up with debt when unexpected expenses arise
  • Avoid predatory lending and payday scams. These lenders often seek people with low credit scores and charge them huge fees to borrow money
  • Weigh the pros and cons of opening a secured credit card account. Generally, they are secured with a large deposit and have high annual fees.


Khan Law helps our clients throughout the Tri-Valley, East Bay region, and San Joaquin county, not only obtain bankruptcy protection, but also prepare for life after bankruptcy. If you have questions on how bankruptcy may affect you or about life after bankruptcy, please contact us or consider scheduling a complimentary consultation.