If you can barely make the minimum payments on various debts or you’re always a few weeks behind when it comes to paying bills, declaring bankruptcy could provide the debt relief you need to regain your financial footing. Although discharging certain kinds of debt through bankruptcy is not an effective approach for everyone, it can be advantageous for many individuals who are struggling to make ends meet. To learn more about the filing process and its potential repercussions, turn to Greg Dunn, Bankruptcy and Debt Relief Attorney. Below, this Honolulu bankruptcy attorney explains what you can expect in the wake of filing.

Immediate Impact

If you declare bankruptcy, it will appear on your credit report and affect your score in a negative way; however, if you have been making late payments because you’re in over your head, chances are your credit score has already decreased significantly in recent months.

Every single late or missed payment impacts your score negatively. As a result, bankruptcy can actually improve your credit over time, because it will discharge the debt that you cannot afford to make payments on every month. This will ultimately prevent your score from taking any more hits due to late payments.

Your Credit Score Over Time

In general, a chapter 7 bankruptcy will remain on someone’s credit report for 10 years from the filing date; however, most people with a bankruptcy on their record can secure new lines of credit within a couple years of filing simply by making smart financial choices. Chapter 13 bankruptcy typically remains on a credit report for seven years from the date of filing. If you’re concerned about repairing your credit after discharging various debts, a seasoned bankruptcy attorney can share helpful tips for doing so.

If you are considering filing for bankruptcy in Hawaii, turn to Greg Dunn, Bankruptcy and Debt Relief Attorney in Honolulu. Visit his website to learn more about the financial services he provides, including foreclosure defense and debt consolidation, or call (808) 524-4529 to schedule an initial consultation with a bankruptcy attorney today.