Filing Bankruptcy Can Improve Your Credit Rating
Most people need to borrow in order to buy a car, buy a house or go to college. For people in this situation, maintaining a good credit rating can open up many possibilities that would otherwise be closed to them. If you are worried about what will happen to your credit rating after bankruptcy, here is an important fact you need to know:
After you file bankruptcy, your credit rating will improve.
This may sound contrary to logic, but it is true. If you have questions about rebuilding your credit after bankruptcy, attorney John Mufson can answer them. Mr. Mufson can also explain the bankruptcy process and how our law firm can help you get debt relief.
Contact The Law Offices of John E. Mufson to schedule your free initial consultation.
What Happens To A Credit Score After Bankruptcy?
There are several reasons why credit scores improve after filing bankruptcy:
- By filing bankruptcy, you are telling potential creditors that you have taken steps to get your debt problems under control.
- If you are in a Chapter 13 bankruptcy, you are making regular monthly payments. Each payment enhances your credit rating and increases your creditworthiness.
- If you filed Chapter 7, credit rating agencies draw the logical conclusion that because your unsecured debts have been liquidated, you have increased cash flow and the ability to assume additional debts.
In fact, your credit rating will begin to improve within 60-90 days of filing bankruptcy. At that point, you may be able to get a car loan or make other purchases on credit.
Delray Beach Credit Score Attorney Serving South Florida
John Mufson has more than 25 years of experience helping people get debt relief. If you have unmanageable debts, Mr. Mufson can recommend the right solution for you, which could include a Chapter 7 or Chapter 13 bankruptcy filing.