The most important effect of bankruptcy on your credit report is that it removes your obligation to repay past debts, and that allows you to start rebuilding your credit. If you are in jeopardy of missing payments, then your credit score will drop and won’t stop until something is done about it. If you have trouble paying your bills each month and have no savings, Chapter 7 or chapter 13 bankruptcy is an option.
For most people you will see your credit score drop immediately after filing for bankruptcy; however you can also expect to see your credit score bouncing back shortly after the bankruptcy is filed because your debt to credit ratio improves. You may also start to get offers for credit cards and other loans after you file. Take your time when reestablishing credit and make sure that the credit card you choose reports to the credit bureaus, also have a plan of action to keep your debt under your control.
If you can’t keep up with your debt payments, then bankruptcy is an option for getting a new start on your financial life. Call King and King at 404-524-6400 for a free bankruptcy consultation today.