Credit Comes Back Quickly After Filing For Chapter 7 Bankruptcy

We are all concerned about our credit reports and what they say and the scores that they generate.  People tell me daily about their credit history, whether it is good or bad.  Everyone who files a Bankruptcy case had good credit at one time.   If they didn’t have good credit, then they would not have been able to borrow the money in the first place.  

When I was in Bankruptcy Court last week with one of my clients, she informed me that she had already received two credit card offers since the filing of her Chapter 7 Bankruptcy case.  We were less than 2 months into her case with still another 2 months to go before completion and the receipt of her Chapter 7 Discharge.  

I told her that this was not unusual.  Once you file for Chapter 7 Bankruptcy and receive your Discharge, then you are out of debt.  The slate has been wiped clean.  New lenders, including credit card companies and car lenders, are anxious to put you in debt again.  Everyone wants a piece of your income as soon as possible once you complete your Chapter 7 Bankruptcy.  They want you to start paying again on new debt.

Also, the Chapter 7 Discharge creates a permanent injunction for the collection of the old debts that were included in your Bankruptcy.  As a result, the new lenders do not have to worry any more that you will be attacked by your old creditors with a lawsuit or garnishment which would prevent you from paying them the new lender.   

People struggle daily to pay their bills.  Sometimes the daily struggle, turns into months, years, and decades of debt.  The Bankruptcy Laws are designed to help people move forward in life without crushing debt, to receive a Fresh Start. A Chapter 7 Bankruptcy in most cases is a very quick process which could leave you free of debt while at the same time creating better credit opportunities for you in the future.

Call Lewis & Jurnovoy today for a Free Consultation. 


Martin S. Lewis

Steven D. Jurnovoy