Some people are worried that filing bankruptcy will permanently ruin their credit score. They know that they need a minimum credit score in order to get a mortgage, auto loan, and other important lines of credit. They worry that their filing will permanently follow them around, barring them from this important money. Fortunately, filing bankruptcy won’t permanently ruin anything. In fact, it may even make getting such loans easier. A bankruptcy attorney can fully explain your options and how filing bankruptcy might help you.
The fact of that matter is that many people deep in debt already have poor credit scores. When you routinely miss payments or fall substantially behind on a bill, it gets reported to credit agencies. And since on-time payments are among the most important factors in a credit score, most people with serious debt problems already have a poor credit history. Therefore filing bankruptcy may not have as large of an impact on a particular score then you might imagine.
To be certain, filing bankruptcy will negatively impact your credit. It is a big decision that should never be entered into lightly. In the months following bankruptcy, it will be difficult to obtain lines of credit. But the further you get away from the filing, the more options you will have available. Eventually, after 8 years, the Chapter 7 bankruptcy completely falls off your credit report.
This can make it easier to obtain lines of credit because you won’t be throwing money at debt that can never be repaid. Instead of throwing good money after bad, you can actually begin to save money for a down payment on a home or car. You can also borrow responsibly and show creditors that you can manage your money. While bankruptcy will be a temporary setback, it can eventually lead to a positive credit score.
At Westbook Law Group, we can look at your situation and explain exactly how bankruptcy might impact your credit rating. We can carefully explain your options and help you find the right solution for your debt problems. If you suffer from overwhelming debt in St. Charles or Troy, MO, contact Westbrook Law Group today for a free consultation.