Your Access to Financing After You Have Filed for BankruptcyDallas Legal News
You’ve been working so hard all of your life to build your credit. From the moment that you were old enough and able to, you obtained a credit card so that you could start building credit. You paid off loans over the years and kept up with all of your finances. However, now you have been put in the most difficult position that you could possibly face: You have made the decision to file for business bankruptcy.
Perhaps you have heard horror stories about what could happen to your existing credit score when you file for business bankruptcy. Unfortunately, everything you built could be at risk and you might wonder if it will ever return to normal as you try to gain footing in your financial life once more. Today we want to speak about post-bankruptcy and how it will affect future financing and more.
What You Could Be Facing
A Plummet in Your Credit Score: You never know the impact that bankruptcy will have on your credit score until it happens. Bankruptcy could actually cause your credit score to go down a solid 22 points or more, which could be huge for you.
Long-Term Damage: Bankruptcy will stay on your credit report for quite some time. In fact, Chapter 7 stays on your record for 10 years. However, over time, the impact on your credit will diminish if you maintain a clean record.
If you are looking to receive financing in the future, you might be afraid of this huge impact that bankruptcy could have on your score. Will things ever return to normal and will you ever be able to take out a loan again if you need it?
Your Future Access to Financing
Yes, it is true that having bankruptcy on your record could affect your access to financing in the future. Lenders are always concerned about your ability to pay them back and, if you have bankruptcy under your belt, there is a chance that they might not see you as credible and might not give you that loan you need. Lenders might be wary, which is why you might need to take other actions.
You might feel as if you are completely without options, but this is not always the case. Even though many lenders will require you to wait anywhere from three to seven years before you are considered for a new business loan, you will still be able to apply for a business credit card or you might be able to apply for an equipment loan even if you have just gone through bankruptcy.
Help During and After Your Bankruptcy
As you can see, bankruptcy comes with many drawbacks, but you are not completely without options during this difficult time. If you are now facing the aspect of bankruptcy and know that it is in your immediate future, it is time to get started on working with a bankruptcy attorney that you can trust at MJ Watson & Associates. We will help you with every aspect of your Chapter 7 bankruptcy or Chapter 11 depending on what you decide to file. Please contact us for more information on how we can assist you at (214) 965-8240.