If you’re considering filing for bankruptcy, you may be concerned about your credit score. Many resources about bankruptcy will tell you immediately that filing will be detrimental to your credit. If you figure out how to best wrangle your financial situation, bankruptcy can lead the way to an improved score.
How Does It Work?
For many filers of bankruptcy, one of the main reasons behind the decision is being behind on debt payments. Many even have accounts in collection. While most debt management programs are designed to help you quickly get back on your feet and pay off the amount you owe, only bankruptcy can offer a completely fresh start, allowing you to move forward quickly and without worry. Bankruptcy dismisses many debts to help you get your finances back in control.
If your credit is a major concern, bankruptcy can help. With less debt, you’ll be able to make payments toward loans, credit cards, and other accounts – on time. With a lower debt-to-income ratio, your credit will be on the rise, slowly but surely.
What if I Don’t File?
If you continue to flounder in your finances without filing for bankruptcy, your credit will continue to suffer. When you make late payments or default on your debts, the money owed keeps building on itself. In many situations, the only way to fix the problem is to start anew, and that means filing for bankruptcy. If you’re considering the various options for debt reduction or elimination, a bankruptcy lawyer in Dayton can help you make the best decision for your individual situation.