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Bankruptcy - Common Misconceptions

Press the reset button on your credit and get the fresh start you deserve!

According to conventional wisdom, bankruptcy will ruin your credit for seven years (some even say ten years!). Don't believe it. We've been fighting in the bankruptcy trenches for years now, and we have seen many cases in which a debtor's credit ultimately improves after a Chapter 7 bankruptcy.

It stands to reason when you think about it. After all, if you were a potential creditor, wouldn't you look favorably on the fact that the credit applicant couldn't apply for another debt discharge for many years to come? The average debtor can't make that claim. Moreover, after a Chapter 7 bankruptcy, your debt burden is likely to be light. 

Find the relief you deserve

Bad credit is more expensive than bankruptcy in the long run.

Bad credit is a curse that can affect many different aspects of your life, including:

  • Your ability to get a loan
  • Your ability to get a credit card
  • Your ability to get a job (yes, potential employers often check applicant credit scores)
  • Your ability to rent a residence, since bad credit will tempt your landlord to doubt your ability to pay your rent
  • Your ability to obtain affordable auto, homeowner's, life, and health insurance (in fact, poor credit nearly doubles the cost of auto insurance, according to

Fool's Gold: The so-called “Credit Repair Companies”

So-called "credit repair" companies offer a quick fix. Remember, though, that these companies have no more power to remove negative information from your credit report than you do. Sometimes, the best first step in repairing your credit is to bite the bullet and file for bankruptcy. Don't think of it as the end of the road – think of it as a new start.

Bankruptcy no longer carries the same stigma it once did.

Times are changing, and it has never been easier to repair your credit after a bankruptcy. If that sound too good to be true, think of the number of wealthy people who have multiple bankruptcies in their past (including the current occupant of the Oval Office). This reality is based on more than intuition and anecdote. The numbers back it up:

  • A report from the Federal Reserve Bank of Philadelphia, using data from the credit bureau Equifax, showed that those who filed for Chapter 7 bankruptcy in 2010 enjoyed an average increase in their credit score from 538 to 620 (a score that is considered “low average”) within six to eight months. Even a score of 720 is possible within a year or two.
  • The FHA allows home loan applicants to qualify for a loan only two years after their Chapter 7 debt discharge, as long as they worked to re-establish their credit during those two years.

Real life success stories

Ultimately, it is real people, not statistics, that matter most to us. We recently contracted with to help our clients rebuild their lives after bankruptcy, and we can't help but be impressed with the results. Click below for two of our success stories:

Any local law firm can file your bankruptcy petition for you. We go a step further and assist you with the entire process of financial recovery.

Don't let bad credit ruin your future – call the Holland Law Group today.

During your free initial consultation, we will explain the bankruptcy process and determine whether you meet the legal requirements to file.

To learn more click here to schedule a free consultation or call us today @ 941-306-3601

Contact Us Today

At Holland Law we focus on Consumer Bankruptcy and Debt Defense. We proudly serve Sarasota, Manatee and Charlotte Counties and expanding to serve all of Central and South Florida, from coast-to-coast. We offer free phone or in-office consultations in Bradenton, Sarasota, Lakewood Ranch, Port Charlotte and across the Central and South Florida region. Contact us through the form on this page or call us at (941) 306-3601 to speak with an experienced bankruptcy and debt defense attorney today. We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.