How Does Bankruptcy Affect Your Credit?
The decision whether to file for bankruptcy is not an easy one that should be taken with great care and after being counseled by a bankruptcy attorney. One of the main concerns that people have about filing for bankruptcy is that they believe that bankruptcy will ruin their credit score for the rest of their life. In the contrary, in most cases filing for bankruptcy will give people the opportunity to rebuild their credit.
If you already have debts listed on your credit report, such as late payments, collections, defaults, judgments, then your credit score is likely already very low and a bankruptcy filing can only help you. In the other hand, if you have good credit then a bankruptcy will adversely affect it. Bankruptcy will, in most cases, help you increase your credit score and in the long term improve your credit history. Bankruptcy will eliminate most debts from your credit report and give you a fresh start in your financial life.
In comparison to debt negotiation, debt consolidation, repaying on and off, and doing nothing, bankruptcy is the fastest way to rebuild your credit. If you don’t file for bankruptcy or choose another option and continue down the same financial path, then your credit score will continue to decline, and you will remain ineligible for future credit.
Bankruptcy gives you an opportunity to get your finances under control. After the bankruptcy discharge, you will be offered new credit opportunities that will give you the opportunity to slowly rebuild your financial life. You will start to look like an attractive candidate for credit since you have just eliminated most of your debt. It will be in your hands to rebuild you financial future.
Click here here to check your free financial history t and find out if there are outstanding debts listed on your report that may be adversely affecting your credit.
Speak to an experienced Maryland and Washington D.C. Bankruptcy attorney before filing for bankruptcy. A bankruptcy attorney will advice you if bankruptcy is a good option for you depending on your individual circumstances.