About four years ago, I could tell that things were turning south with my business. Cash flow was tight, and customers simply weren't coming back to shop some more. I realized that if I was going to keep my house, I would need to do something to resolve my finances. Although it was scary, I decided to meet with a bankruptcy attorney. After I explained my situation, he helped me to understand the process and how to tell if it was a good idea or not. When I decided to do it, things started changing for me right away. This blog breaks down bankruptcy in layman's terms, so that you can decide whether or not it is right for you.
If you're in a financial situation that has made you consider whether you should declare bankruptcy, one thing that may be holding you up is a concern over the harm that bankruptcy will do to your credit score. It's important to accept that you probably don't know the full picture about what bankruptcy will do to your credit rating — but it's easy to find someone who does. Scheduling a meeting with a local bankruptcy attorney allows you to ask any questions that you may have about your credit score in relation to declaring bankruptcy, as well as go over any other bankruptcy-related topics. Here are some things about your credit score that might surprise you.
Bankruptcy May Not Make It Much Worse
One thing that people in challenging financial situations can fail to realize is that declaring bankruptcy won't necessarily worsen their credit score significantly. The reason is that if you're in a position in which declaring bankruptcy is your best move, there's a high probability that your credit score has already suffered. For example, perhaps you've repeatedly missed payment deadlines and numerous creditors have pursued legal action against you. With a credit score that is already low, a bankruptcy declaration may not have as big of an impact as you think.
You Can Rebuild It
It's easy to be upset about the idea of a bad credit score and temporarily forget that a bad score isn't permanent. You may feel as though a declaration of bankruptcy will plummet your credit score and it will remain low for the rest of your life. Rebuilding a low credit score can be easier than you think, and your bankruptcy attorney will offer you advice about the best way of doing so. Generally, borrowing small amounts of money on a credit card and not carrying a balance is a recipe for success when it comes to rebuilding your credit after you've declared bankruptcy.
It Won't Happen Immediately
Rebuilding your credit score takes time, so it's important that you don't become too preoccupied with this process. For example, your bankruptcy attorney will likely caution you against checking your credit rating on the internet daily or even weekly. You won't see changes this quickly, and not seeing changes could have you feeling frustrated. It's better to know that this is a long-term process, but one that is perfectly attainable if you follow your legal professional's advice.
Contact local bankruptcy attorney services for more information.Share
22 March 2019