A bankruptcy attorney San Diego is someone you should always look at first whenever you are feeling that it’s time to file a bankruptcy for you. BLC Law Center understands it’s not an easy decision but, you can only think of starting a new life when you are successfully bankrupt.

Choosing the Right Type of Bankruptcy

Most client’s income and assets help to determine which chapter bankruptcy they should file for. For example, too much income might prevent you from filing a simple Chapter 7 case. Or, if you have a property you’d lose in Chapter 7 that you’d like to keep, you can protect it in Chapter 13.

In Chapter 7 bankruptcy, the bankruptcy trustee has the power to sell your nonexempt property to pay back your creditors. As a result, Chapter 7 might be costly if you own a lot of assets. By contrast, Chapter 13 bankruptcy allows you to keep all of your property in exchange for paying back a portion or all of your debts through your repayment plan.

Further, if certain conditions are satisfied, Chapter 13 bankruptcy offers debtors additional benefits that aren’t available in Chapter 7. Choose an eligible chapter 7 attorney San Diego or chapter 13 attorney today with us.

Chapter 7 and chapter 13 affect your credit report

Because the most common type of bankruptcy chosen among people is chapter 7 and 13 thus how 7 & 13 bankruptcy will affect your credit report are:

Chapter 7

Chapter 7 is one of the most common forms of bankruptcy used by people. In this, the assets of the debtor are evaluated and sold to distribute the amount among the creditors. The effect of this chapter 7 is very long on your credit report which is around 10 years.

Chapter 13

Chapter 13 is different from chapter 7 as it enables you to pay your creditors through a payment scheme. The duration of the payment scheme can be a maximum of 5 years. The effect of chapter 13 bankruptcy is long that long as chapter 7.

Chapter 7 Attorney San Diego

Thus the conclusion in chapter 7 gives your credit scores a greater hit than chapter 13, as there is no repayment plan in chapter 7 and you don’t pay anything so the court hits your credit score.

But when you choose chapter 13 bankruptcy then you pay your creditors through a payment plan made. Thus it does not affect your credit report much as compared to chapter 7 bankruptcy for you. As you give your future lender a bit of creditworthiness which makes a positive effect and benefits your credit report.

Can you improve your credit score after being bankrupt?

There is no other way than making a regular payment towards your debt, it’s the only way you can improve your credit score. Some people think that if they file for bankruptcy then it will not affect their credit score but they are wrong. You just need to work on your credit habits and your credit score will slowly increase.

Responsible use and timely payments can help you down the road to a better credit score. Consult a bankruptcy lawyer in San Diego for yourself so you can get an idea before you file for bankruptcy. You can find the best bankruptcy attorney for you with BLC Law Center.

Rebuilding your credit score

There are a lot of things that you can do to improve your score after bankruptcy, and the first step is that you can check whether your bankruptcy is filed correctly or not. You need to pull your credit reports to check on your bankruptcy debt discharges. They should be marked as discharged and show zero balances.

The next steps include establishing new credit and paying your bills. When obtaining new credit, stay within your means. Only take on debt that you are financially able to pay off responsibly. You should also track your credit reports and credit score regularly.

Contact BLC Law Center to book an appointment with a professional chapter 7 attorney San Diego for you who can guide you in the best way possible.