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Will A St Louis Bankruptcy Ruin My Credit Forever?

No, it will not. In fact, most people are surprised to learn that your credit score will actually climb (on average) of about one hundred (100) points within the first year of filing for bankruptcy. And that within a year and a half to two years after filing, your credit rating is usually back up to where you want it to be.


Probably the most common misperception that I hear from people when I do a bankruptcy consultation is the idea that they will somehow be in a worse position credit-wise after filing. But the exact opposite is true. The court system describes a St. Louis bankruptcy as a “fresh start / clean slate”. It’s a chance to wipe the slate clean, pick yourself up, and start fresh. It’s a chance to move forward in life with a much better financial standing.

One of the main benefits (as mentioned above) is the fact that your credit score will improve dramatically relatively soon after filing for bankruptcy. This is because all of the unsecured debt that had been causing the credit bureaus to assign a low score will be discharged (literally knocked out forever). And when there is no longer any unsecured debt (credit cards, medical bills, collection agencies, etc.) weighing you down, your credit score will have a chance to rebound.


So why does everyone always seem to have this misperception about the effect of a St. Louis bankruptcy? Because of two main reasons: 1) Many creditors are more than willing to provide you with false information about the bankruptcy process. Obviously, they want to keep you from filing, so they will tell you a bunch of (untrue) horror stories to scare people out of filing. The most common lie that creditors will tell? “If you file for bankruptcy, you’ll never be able to secure any credit again!!” This is simply untrue. And the best evidence that I can provide for their untruthfulness is the fact that these very same creditors (the ones who are telling you that filing a St. Louis bankruptcy will ruin your life forever) will be extending you lines of new credit as soon as you receive a discharge from the bankruptcy court!! You read that correctly! Once your debts have been officially knocked out, the creditors will waste little time in contacting you (usually by way of an unsolicited mailing that offers you great rates on a credit card). 2) There is just a lot of misinformation that travels around by word-of-mouth. I have listened to a lot of people over the years tell me stories about how they “know someone who tried to file a bankruptcy, and they lost everything that they had!!” Upon further investigation, I learn that that was not the case at all (but it got stuck in the person’s mind that bankruptcy will force you to give up all your belongings). I even had an individual tell me one time that the reason she had been putting off filing for bankruptcy is because she knew for a fact that if she filed “I’ll lose my right to vote!”


Clearly there is a lot of misinformation in regards to bankruptcy. But this is why it is so important to speak with an experienced St. Louis bankruptcy lawyer!! This will give you an opportunity to learn about your rights, figure out your options, and have all of your questions answered.

We have one location by appointment only: 4625 Lindell Blvd St. Louis, MO 63108. The initial consultation is free. So contact us today to learn more!!

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