Bankruptcy and Your Credit Rating

A recent (reported February 2009) study was conducted by Ethan Cohen-Cole on behalf of the Federal Reserve Bank of Boston. They made the following conclusions:

First, we show that individuals who file for bankruptcy can indeed get credit very quickly after they file. Second, we show that those individuals who are effectively the least punished and can get the easiest access to credit after a bankruptcy tend to be the ones who have shown the least ability and propensity to repay their debt prior to declaring bankruptcy. In fact, a significant fraction of individuals at the bottom of the credit quality spectrum seem to receive more credit after filing than before. We interpret the widespread credit access and the difference in credit provision across borrower types as evidence that lenders target at-risk borrowers.

It is almost certain that you will be able to still get credit after bankruptcy. I have a service where I can tell you what your credit score is now and what it will probably be 1 year after bankruptcy. Every time I have run this program my client’s projected scores have increased dramatically.

Not every San Diego Bankruptcy attorney performs this service for his or her clients.  I perform the service for no additional charge to the client.

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