There are plenty of people who are thinking of filing for a personal bankruptcy who are holding back in fear of what would happen to their credit scores if they did file. However, the truth is that filing for bankruptcy is one of the first steps toward rebuilding credit.
To get a better understanding of this, let’s say you are someone who has bills that are simply pilling up. Some are being missed, while others are being paid late. In this scenario, the truth is that your credit score is already being hurt by the missed payments.
Now, let’s say you have fallen behind on your bills — as thousands of Americans have — and you file for either a Chapter 7 or Chapter 13 bankruptcy. While this bankruptcy filing will impact a credit score, by filing you are taking a substantial step toward getting out of debt. In fact, many often think of bankruptcy as offering a fresh financial start.
From here, you can once again build your credit back up. Some may believe that once you file for bankruptcy, you will never have credit again, but this is simply not true. In fact, you may be surprised by just how quickly you can rebuild credit — without the fear of missed payments.
At Rothschild & Brooks, PLLC, our experienced attorneys can explain in greater and more specific detail how filing for bankruptcy can help your current debt situation. Do not let fear of a low credit score hold you back. Rather, talk with an attorney to learn the truth about personal bankruptcy.