What Does Bankruptcy
Do To Your Credit Score?
King and King Bankruptcy Attorneys 12/28/12
Bankruptcy reduces balances due to zero on your credit
report. However bankruptcy does not
remove a creditor from your credit report and it does not remove the history of
missed payments. If you’re looking to remove a creditor from your credit report
you can simply wait for them to drop off or file a valid dispute with the
credit bureaus. 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.
Your credit score will drop after you file for bankruptcy,
however your credit score will usually go back up shortly after the bankruptcy
is filed because your debt to credit ratio improves. You will also start to get offers for credit
cards and other loans after you file.
When reestablishing credit make sure that the secured credit card
reports to the credit bureaus and to have a plan of action to keep your debt
under your control.
I Don’t Want My Credit Score to Drop, Should I File
Bankruptcy?
If you are missing payments, then your credit score is
decreasing and won’t stop until something is done about it. If you have trouble paying your bills each
month and have no savings, then one large unexpected expense can put you in
serious financial jeopardy.
If you cannot pay down your debt and don’t have any savings,
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.
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