Federal Way, WA asked in Bankruptcy for Washington

Q: Hi im filing Chapter 7 bankruptcy

I also found a lawfirm that removes information from my credit, do those 2 things conflict if done at the same time?

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2 Lawyer Answers

A: Removing derogatory information in your credit report does NOT absolve you of the underlying debts that caused the information you want removed. Filing a Chapter 7 may result in getting rid of some or all the debts--but your credit report will then contain that information.

Don F. Harris agrees with this answer

Don F. Harris
Don F. Harris
  • Bankruptcy Lawyer
  • Albuquerque, NM

A: A bankruptcy is a very negative credit event (I've heard typically at least a 100 point drop). However, if you have a lot of defaulted credit cards, a bankruptcy may increase a very low score (because you have no debt after discharge).

Regardless, you credit will recover within two years of your bankruptcy discharge to the high 600's or even low 700's if you do everything right (a different conversation). FHA guidelines state that you can buy a house two years after your Chapter 7 discharge (Google it).

Get rid of that debt, and start rebuilding. Further, some credit repair companies are ripoffs. If you challenge a valid, defaulted credit card, the company could respond by suing you to protect its interest.

Do the bankruptcy. After everything has settled, then go to a reputable credit repair place to see if anything else would be helpful.

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