What about my credit? Won’t a bankruptcy keep me from getting loans or additional credit if needed?
What Happens To My Credit After Bankruptcy?
Some people avoid or delay considering bankruptcy because they believe it will ruin their credit. In fact, the opposite is often true. After filing for bankruptcy most people’s credit scores begin to improve, as your debt-to-income ratio is greatly reduced.
If you have had your wages garnished, facing foreclosure on your home, risking the repossession of your car, or have difficulty making your monthly minimum credit card payments, filing for bankruptcy may actually improve your credit.
Your FICO Score — the main measure of the health of an individual’s credit — determines whether creditors will lend you money, how much, and at what interest rate. As your debt to income ratio increases, your score decreases. Every late payment decreases your credit score. If you default on your loans, your credit is likely to be so damaged that you will not be able to repair it by yourself.
At Atwood & McVay, we not only want to help lift your debt burden, but also give you a fresh start and get you on the road to rebuilding your credit. By contacting our office for a consultation, we will get past many of the myths by giving you the facts about your financial health and future.