How will my credit be affected?

Anything you do concerning payment of your debts is a part of your credit record.

Bankruptcy, like prompt payment, slow payment, foreclosure, repossessions, charge-offs or any other manner of handling your debts, is reported on your credit record. Good credit is paying what you owe when it is due. Anything else is less than good.

The normal time any event stays on your record is 7 to 10 years, including a bankruptcy.

How your credit history will affect you depends on how the person reviewing your credit report wishes to interpret it.

Since the consideration of bankruptcy arises only after a bad situation has developed, the chances are that your credit record is already less than good, or is rapidly heading in that direction.

A bankruptcy is a negative event on your credit history. It is also a unique event. It shows prospective creditors that you do not owe any of the debts (including late or missed payouts) that preceded your bankruptcy. In most cases, your debt slate is wiped clean. This doesn't mean that you will be able to get credit immediately after you file bankruptcy. But filing does give you an opportunity to begin a new chapter in your credit history, a fresh start, and over time you will be judged more and more on your history after the bankruptcy, including your payment history, stability of employment and income.

In this situation the hope is that whatever you do will improve and re-establish good credit.

Each person's situation is different. What applies to one person may not apply to another. To determine bankruptcy options as they apply to you, an attorney competent in bankruptcy matters should be consulted.

If you wish to have a confidential appointment to discuss your bankruptcy options with an attorney in the Law Offices of John M. Miller, you may do so by calling (515) 225-3333 between the hours of 8 a.m. to 5 p.m.(Central Time), Monday through Friday.