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Credit Scores After Bankruptcy

Liviakis Law Firm Team
Bulls eye with the word Goals

There is a misconception that filing for bankruptcy damages your credit and prevents you from securing credit in the future. In fact, this is one of the most common excuses people have for not seeking debt relief help through bankruptcy. This misconception can do more harm than filing for bankruptcy in many cases, as it prevents people from making an educated decision to seek financial relief.

Credit Myth Busted

While there is truth to a bankruptcy mark being noted on your credit profile for up to ten years, the mark of having filed for bankruptcy doesn’t actually impact your score in ways that you would assume. Most people think their score will drop after a bankruptcy filing when, often, the opposite is true.

Bad credit scores are created through delinquent debts, missed debt payments, high debt balances, and a ratio of debt-to-limit that exceeds 30%. In other words, debt balances that are nearly at the maximum limit allowable can bring down your credit score quickly. When you file for bankruptcy, you are either provided a plan to repay a portion of your debts through Chapter 13 or your qualified debts are eliminated through a Chapter 7 discharge. When these debts are paid down until resolved or eliminated in Chapter 7, your debt balances are lowered and the debt-to-limit ratio is brought down. The results of a debt discharge can actually improve your credit score following bankruptcy if you have started the process with a relatively low score.

Each bankruptcy case is unique to the individual filing for debt relief, as it is based on their combination of debts and assets. It is recommended to always work closely with a Roseville bankruptcy attorney when seeking debt relief consultation and assistance. An experienced attorney can best guide you to debt relief while working to protect your assets and income accounts.

Our Office

Former Office
1215 K St

Sacramento, CA 95814

Phone: 916 459 2364
New Office
2377 Gold Meadow Way
#100

Gold River, CA 95670

Phone: 916 459 2364

Client Reviews

Mr. Liviakis is extremely knowledgeable and answered all of the questions that we had about our situation. He made a really difficult time manageable with his help and expertise. I would definitely recommend...

Lindsey Joyner

Mik is a great attorney. Very friendly & professional. Price is was bit high compared to other firms. Probably the highest I've seen. If price your thing, checkout other firms. Other than that, Mik will get the...

Oi Vinn

Mik helped us save our home and settle with creditors during the pandemic after we were forced to close our family business for over a year. I am forever grateful. He was kind and professional and followed up...

Jina and Steven Hale

Mr. Liviakis was timely and professional. He patiently answered questions and explained the process. He provided handouts that clearly outlined due dates. The firm's paralegal was very easy to work with. I...

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I nothing but great Experiences, and great service.

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