How does filing bankruptcy affect your credit score? The answer will surprise you. Filing bankruptcy will improve your credit score.
In general, people who need to file for bankruptcy already have below average credit scores. Filing bankruptcy will not harm their poor credit rating. Filing a bankruptcy can actually help improve a person’s credit score.
Once you receive a bankruptcy discharge your credit report is wiped clean of all the debt you owe. The references to late payments, charged off accounts, repossessions, foreclosures and lawsuits don’t matter any more. They all fade away. The trade lines are then marked “Included in bankruptcy” and should show a zero balance.
If your debts are crushing you, filing bankruptcy will give you a fresh start. If you pay your bills on time after your bankruptcy discharge, your credit score should be back in the 700’s within one to two years.
If you would like to know more about how bankruptcy may be able to help you, contact us today to schedule a free initial consultation. You can meet with an attorney in relaxed and confidential surroundings where all of your questions will be answered in plain English. We will give you the pros and cons of bankruptcy as they relate to your specific situation. We can also suggest other options if bankruptcy is not your best choice.
Disclaimer: This blog is intended as general information purposes only, and is not a substitute for legal advice. Anyone with a legal problem should consult a lawyer immediately.