Long-Term Effects of Filing for Bankruptcy

Written by: Debt Doctors of Missouri

What to Expect If You File for Bankruptcy

While you may be aware of some of the short-term effects of filing for bankruptcy, you may not know about some of the things that can happen down the road. Once the dust has settled, there are a number of ways that bankruptcy can affect you and your family. It is important to understand the impact that filing for bankruptcy will have now and in the future. 

At Debt Doctors of Missouri, our bankruptcy attorneys represent individuals who are considering filing for bankruptcy. Our lawyers help you to achieve freedom from overwhelming amounts of debt. If you are thinking about filing for bankruptcy in Missouri, contact our office at (414) 466-3328 to schedule your free initial consultation. 

Here are four long-term effects of filing for bankruptcy:

Better Credit Score

While it may seem counterintuitive, your credit score should actually improve over the long term after filing for bankruptcy. The reason is that most people who file for bankruptcy are struggling financially. You may have been unable to make payments on time or may have missed them altogether. All of these things can directly impact your credit, lowering your score. 

While you may see your score drop again immediately after you file your bankruptcy petition, over time, you should be able to rebuild. By starting from scratch, you can increase your score with on-time payments.

Permanent Debt Relief

One of the most important things that bankruptcy does is provide permanent debt relief. Depending on the type of bankruptcy you file, you may not only be able to discharge certain debts, but you may also get to keep your property. It can be particularly helpful if you have large amounts of unsecured debt, such as credit card debt. 

Higher Rates 

One of the negative long-term effects of filing for bankruptcy is that you could face higher rates, at least for a while. You may have to deal with higher car insurance rates and higher interest rates on loans. Luckily, as you rebuild your credit, you’ll regain more favorable terms from insurers and lenders. 

Cautionary Lending

You can expect lenders to be slightly more cautious when you apply for a loan. It’s important to prepare for this since you might not qualify for certain loans or mortgages right away. Obtaining a secured credit card after filing can help you build back up your credit score and get back on track financially.

Learn More About Filing for Bankruptcy

If you have large amounts of unsecured debts and are unable to make your payments, there are options available to help you regain financial freedom. Contact our office at (417) 466-3328 to schedule a free consultation. Our legal team can help you understand the bankruptcy process, including the pros and cons of filing. Let us help you stop the creditors. Call now to get started. 

We proudly serve all of Springfield, Missouri, and the surrounding communities. Do not wait. Our lawyers are here to help. All consultations are confidential and provided without obligation to retain our services.

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