The Law Office of Kim Covington

Call For A Free 1-Hour Consultation
541-393-2790 | 800-673-1891

Please Ask For Kim Directly When Scheduling An Appointment

Bouncing back from Chapter 7 bankruptcy

Many consumers who are struggling with debt in Oregon believe that filing for bankruptcy would make their problems even worse. This is not necessarily true for those with a lot of unsecured debt since many people who file for bankruptcy find that their credit scores begin to go back up quickly after bankruptcy.

A study by LendingTree found that 43 percent of debtors who filed for bankruptcy had a credit score of 640 or greater within a year after filing for bankruptcy. Within two years, 65 percent of debtors had a credit score above 640.

Three years after filing for bankruptcy, consumers who applied for a mortgage were offered APR rates that were 19 points higher on average than applicants who had not filed for bankruptcy. Those with credit scores of at least 720 three years after bankruptcy were offered similar interest rates compared to applicants who had never filed for bankruptcy.

The key to bouncing back after a bankruptcy is to avoid the same habits that led to needing to file bankruptcy in the first place. Consumers should make sure all bills are paid on time and pay extra on loans when possible. An emergency fund can keep many people from having to rely on credit cards for unexpected expenses.

Debtors who face overwhelming debt may be able to get a financial fresh start by filing a Chapter 7 bankruptcy. A Chapter 7 bankruptcy allows a debtor to discharge many types of debt, including credit card bills and student loans. Filing for bankruptcy should also stop wage garnishments, repossessions and creditor calls.

An attorney may be able to help debtors file for bankruptcy by preparing petition paperwork, filing for property exemptions and attending the Chapter 7 meeting with creditors. Many debtors will be able to keep most of their property when they file for a Chapter 7 bankruptcy under state or federal property exemptions.

No Comments

Leave a comment
Comment Information
email us for a response

Learn More About Your Fresh Financial Start

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

The Law Office of Kim Covington is a debt relief agency, and I have helped families, individuals and small businesses, file for bankruptcy relief under the U.S. Bankruptcy Code, for over 19 years.

The Law Office of Kim Covington

The Law Office of Kim Covington
1445 Willamette Street, Suite 9
Eugene, OR 97401

Toll Free: 800-673-1891
Phone: 541-393-2790
Fax: 541-344-6466
Eugene Law Office Map

P: 541-393-2790

T: 800-673-1891

F: 541-344-6466