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.
