Many people are concerned about the impact of having a bankruptcy on their credit record. If you are petitioning for bankruptcy your credit score has typically already been marred by late payments, non-payments, excess debt-and possibly foreclosure. We are here to help. Both programs, in different ways, are designed to help you improve your finances and improve your credit over the long-term.

Things can only improve from this point forward.

Bankruptcy is an opportunity for people to get a new start. That new start applies to your credit as well as your bills. The slate is wiped clean and there are ways to begin to rebuild your credit after bankruptcy and you CAN recover a good credit rating with time and effort.

Chapter 13 debt reorganization is designed to improve your credit throughout the course of the program. There are two main functions of credit: Making your payments on time and amount of outstanding debt relative to your income. Overall, if payments are being made on time through the program you could expect your credit score to improve throughout the life of the plan. The Chapter 13 plan addresses both:

• Reduce debt: Since you are focusing your efforts on paying down straight principal debt, your debt-to-income ratio will improve throughout the course of the program.
• Re-establish consistent payment to creditors: The Plan will eliminate negative reports to the credit reporting agencies and will provide consistent, timely payments to your creditors through the Chapter 13 plan. 

Chapter 7 bankruptcy will appear on your credit report for ten years, but will not impact your credit for that length of time. You will need to re-establish credit, as the Chapter 7 virtually wipes the slate clean. But it IS possible. Mortgage lenders advise us that most clients will qualify for a conventional mortgage just two years after a Chapter 7 bankruptcy filing. Sometimes a Chapter 7 will actually improve your chances of getting future credit because it eliminates debt and therefore reduces you debt-to-income ratio which may have been prohibiting you qualifying. Talk to one of our bankruptcy attorneys for more information about life and credit after bankruptcy.

Our bankruptcy lawyers have helped thousands of people get back on their feet financially. Don't take our word for it - you can read what our past clients have to say about working with Acclaim Legal Services and the relief they found from getting out of debt and on with their lives. They've done it and you can too.

Foreclosure

Foreclosure is the worst situation for your credit record. If you are behind on your house payments and don't see how you can get current with your bills NOW is the time to contact a bankruptcy attorney, BEFORE the bank begins foreclosing on your home. Call us at 866-438-5217.

Acclaim Legal Services is a debt relief agency serving people in Wayne County, Oakland County, Macomb County, Livingston County, St. Clair County, Genesee County, and Washtenaw County including Detroit, Livonia, Flint, Southfield, Pontiac, Mt. Clemens, Warren, Royal Oak, West Bloomfield, Troy, Ann Arbor, Dearborn, Sterling Heights, Ypsilanti, and Farmington Hills. We help people file for bankruptcy relief under the Bankruptcy Code.