Many people who stand to benefit enormously from the protections provided by bankruptcy hesitate, worried about the long-term impact of having a bankruptcy on their credit history. While bankruptcies do stay on your credit report for up to 10 years, they don't necessarily represent the end of credit for you. The Gil Law Firm, a Dothan bankruptcy attorney serving clients in Alabama, Georgia, and Florida, explains the long-term consequences of filing for bankruptcy.
In the immediate aftermath of filing for a bankruptcy, you'll see a sudden drop in your credit score, which may fall by up to 220 points. It may seem like you'll never be able to rebuild your credit, which can make it difficult to ever qualify for an auto loan, mortgage, or credit card.
However, with your debts discharged, rebuilding your credit isn't very difficult and actually doesn't have to take too long. You'll be able to get approval for a secured credit card and should be able to get store cards and gas cards sooner rather than later. Just remember to pay off your balance in full every month to demonstrate that you can responsibly handle credit, and carefully read the fine print on any credit card offers you receive.
The attorneys at The Gil Law Firm know how difficult living in the shadow of mounting debts can be, which is why they dedicate themselves to helping you get a second chance at life. Visit their website to learn more, or call (334) 673-0100 to schedule a consultation.