One of the major goals to be achieved after filing a Missouri or Illinois bankruptcy is the rebuilding of a credit score. A healthy credit rating can allow you to make smart purchases, put you in a position to negotiate a better deal, and give you the peace of mind that comes with knowing that your financial ducks are in a row. That peace of mind begins the moment you file the petition with a St. Louis bankruptcy lawyer, as your opportunities to rebuild will be immediate.
When you file a St. Louis Chapter 7 bankruptcy, all of your unsecured creditors (like credit cards, medical bills, payday loans, deficiencies from foreclosures and repossessions, etc.) are discharged. These debts can no longer be collected upon, and you are no longer obligated to make payments on them. After receiving this discharge from the court, you can typically expect to see your score rise by about twenty (20) to thirty (30) points upward. Most of our clients regain the score they once had within one to two years of filing. And within two to three years, most people are enjoying credit scores like they never had before. But that is the whole point; to put you in a position so that you can begin to rebuild and move forward.
When you file a St. Louis Chapter 13 bankruptcy, you put into a repayment plan over the course of three (3) to five (5) years, during which certain debts are paid back (including mortgage arrearage, car notes, delinquent tax debt, and back child support). These debts are consolidated into one easy, monthly payment to the Trustee. The Trustee then distributes these monies to the various creditors listed in your plan. After thirty-six (36) regular, monthly payments in a three year plan, forty-eight (48) monthly payments in a four year plan, or sixty payments (60) in a five year plan, your credit score will be very strong indeed. This will then put you in an even better position to rebuild your credit rating, as you continue down the road towards financial freedom.
The affordable St. Louis bankruptcy attorneys at The Bankruptcy Company have been providing quality bankruptcy legal services for years. Our goal is to make sure you are made aware of all your options, answer all of your questions, and help guide you through the entire process from start to finish.