At Craft Law Offices, our clients often ask us a number of questions about how filing for bankruptcy will impact their finances, especially their credit score. Fortunately, as bankruptcy attorneys, we are here to help you through the entire bankruptcy process and answer all of your questions along the way.
Your credit score is based off of a number of financial factors, such as loans, credit cards, mortgages, utility bills, and a number of other debts you may have. Simply put, if you make payments on time and consistently, your credit score will continue to improve. If you leave debt unresolved or skip payments, your credit score will lower.
Because people who file for bankruptcy are often behind in some payments, their credit score has already been negatively impacted before they even file for bankruptcy. Filing for bankruptcy can help you catch up on your debts and thus improve your credit score in the long run.
There is no denying that bankruptcy will negatively impact your credit score. However, this impact is not permanent. On average, bankruptcy will show up on a credit report for 5-10 years. In the meantime, you can do a number of things to begin to rebuild your credit. For example, you can make sure to pay all of your bills on time.
Even with bankruptcy on your credit report, you can still get credit cards and loans. However, be aware that your interest rates will be higher than someone who hasn’t filed for bankruptcy. Again, with that said, you can make responsible financial decisions that will improve your credit score and lower potential interest rates.
If you are thinking about filing for bankruptcy, and you have questions, feel free to contact us at Craft Law Offices in Greenville, NC for a free consultation. Don’t forget to visit our Facebook page for updates and helpful information about the ins and outs of bankruptcy.