Credit Scoring and Bankruptcy

20 Feb Credit Scoring and Bankruptcy

One of the most common questions that gets asked by potential clients is how will bankruptcy effect my credit. The most common answer is that it cannot hurt their credit any further, in most cases the damage to credit has already happened. Most clients I talk to already have judgements, foreclosures, late payments, and unpaid debt. These contribute to credit scores that are on the lower end of the scale, and these issues will not get cleaned up quickly. Once you have these negative things on your credit score it could take years to remove and improve your credit.

The advantage of bankruptcy is that it removes the negative credit history right away, allowing your credit to improve dramatically in the few years after bankruptcy. In most cases our clients see dramatically better credit scores after bankruptcy. If you have been struggling with bad credit and debt that you cannot repay, give our office a call for some information.