Long Island Bankruptcy Lawyer Melvyn Jacoby explains the effect of bankruptcy on a person’s credit.
With regard to bankruptcy filings and the effect on their credit, that’s a very common question to be asked. What happens in reality when one file a bankruptcy is their credit score goes up, the reason for that is that they no longer have any debts. If one were doing a Chapter 7 the period of time from start to finish is approximately three months. When that bankruptcy is over one should make their mortgage payment on time, their car payment on time and any other secured loans they may have on time. That helps rebuild the credit in a very short period of time. In addition to that an individual should get several secured credit cards which would be a Master or Visa card which is good for the amount of money that is on deposit in the bank. And that card should be used on a regular basis and the important thing would be to pay back on time. Normally if one does a Chapter 7 bankruptcy they can get a car loan when the bankruptcy is over in three months and for most people they could obtain a house mortgage two years after the bankruptcy is finished.