Bankruptcy Is Not the End of the World
If you are in serious financial debt, considering bankruptcy, and you have not yet talked to an attorney about your debt-relief options, you probably assume your life is going to be worse after filing for bankruptcy. You probably envision some kind of scarlet letter on your chest, unable to get any kind of credit for the rest of your life.
This could not be further from the truth!
One of the most common bankruptcy myths is that once you file for bankruptcy you will not be able to reestablish your credit after bankruptcy. But for many of clients, bankruptcy is the first essential step to financial freedom, which includes access to credit from reputable lenders. With offices in Chesterfield, Colonial Heights and Henrico, Virginia, we are convenient to Southside, West End Richmond and Petersburg residents. Let our experienced bankruptcy lawyers help you find the financial freedom you need.
Rebuilding Your Credit After Bankruptcy
Although filing for bankruptcy will stay on your credit report for 10 years, and it will do some initial damage to your credit score, it will probably benefit you in the long run:
- Stop default: When your debts are discharged, they are no longer reported as delinquent or in default.
- Appear to be a better risk for creditors: Since you cannot file for a Chapter 7 bankruptcy again for eight years, many creditors will see you as a good risk.
- Start building small: Because they see you as a good risk, many creditors will be willing to offer you credit cards and other lines of credit with modest limits. If you accept a small number of these credit lines and keep up with your payment, you can begin small with rebuilding your credit, growing your limits higher and getting better rates over time.
We can help you through the bankruptcy process so that you understand the benefits of bankruptcy and how you can rebuild your life after filing.
Contact a Chesterfield Consumer Bankruptcy Lawyer
We want you to have the information you need to make sound decisions as you fight your way out of debilitating debt. Either call or contact us online to schedule an initial consultation.
We work hard to keep our fees and costs as reasonable as possible.
Rebuilding Your Credit FAQ
Yes, with some exceptions. Bankruptcy will not normally wipe out: (1) money owed for child support or alimony, fines, and some taxes; (2) debts not listed on your bankruptcy petition; (3) loans you got by knowingly giving false information to a creditor, who reasonably relied on it in making you the loan; (4) debts resulting from “willful and malicious” harm; (5) student loans owed to a school or government body, except if:– the court decides that payment would be an undue hardship; (6) most taxes.
A: Bankruptcy stays on your credit report for up to 10 years. But after your case is over, and the credit you obtain is used wisely by paying the debt on time you can rapidly improve your credit rating. By filing bankruptcy and discharging you debt, your debt-to-income ratio improves which is a major factor that is used to determine your ability to obtain credit.
Eight years from the date of filing.
Once a creditor or bill collector becomes aware of a filing for bankruptcy protection, it must immediately stop all collection efforts. After you file the bankruptcy petition, the court mails a notice to all the creditors listed in your bankruptcy schedules. This usually takes a couple of weeks. Creditors will also stop calling if you inform them that you filed the bankruptcy petition, and supply them with your case number. In some cases, you or your attorney should contact the creditor immediately upon filing the bankruptcy petition, especially if a lawsuit is pending. If a creditor continues to use collection tactics once informed of the bankruptcy they may be liable for court sanctions and attorney fees for this conduct.
Your Debt Relief Lawyers In Virginia
Giving You Peace of Mind — Our attorneys have over 30 years of experience representing clients who are facing extraordinary challenges. Every case is unique, and that’s why you need professional legal counsel to help you decide your next steps. Contact one of our attorneys today to learn more.
J. Thompson Cravens
Joe Cravens is a proud veteran of the United States Army and has practiced in the areas of personal injury, criminal law, domestic relations and military law for over 30 years. He is a life member of the Million Dollar Advocates Forum.View Profile
David Edward Noll
David Noll’s primary focus is working directly with his clients in order to strongly advocate the best possible result. He has been representing Virginians for over two decades in all things civil litigation.View Profile
W. Allan Burns Jr.
Allan Burns is a University of Richmond Law School alum. He excels in the areas of family law, bankruptcy, business law and personal injury.View Profile
Tameka W. Robinson
Senior Associate Attorney
Tameka Robinson is passionate about equal access to justice and juvenile justice issues and taking care of her community. She is engaged in various community service events, cheers for her hometown teams, the Yankees, Giants and the Knicks and loves traveling wherever the road may lead.View Profile
Kent Benninger graduated from Liberty University both undergraduate and Law before moving to Richmond in 2016. He began his career with a focus on Criminal Law.View Profile
Eppa Hunton VI
Eppa Hunton grew up in the Richmond area before falling in love with the Shenandoah Valley while attending Washington & Lee University in Lexington. He now heads Cravens & Noll’s Harrisonburg office and enjoys exploring the natural beauty of the area.View Profile
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