Many people avoid bankruptcy because they worry about their credit score.
Yes, bankruptcy may damage your credit score and can stay on a credit report for up to ten years. However, not paying your bills, allowing your debt to go to collections, or suffering a foreclosure may do even more damage.
A bankruptcy can stay on your credit report up to 10 years.
After a bankruptcy is complete, there are steps to build your credit score back into a good range. First, check your credit report to make sure debts are discharged; also continue making timely car or mortgage payments; obtain a new credit card and make regular payments. As the years pass and you are able to show your increased ability to handle debt, lenders will tend to look more favorably at you as a credit risk. An attorney can provide you with additional ideas and strategies dependent on your situation.
Bankruptcy can be a positive solution to debt problems and for some people it’s the right path. To find out if a bankruptcy is right for you and why your credit score alone should not be the deciding factor, please contact our office.
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