How Filing For Bankruptcy Will Improve My Credit And Quality Of Life?

How Filing For Bankruptcy Will Improve My Credit And Quality Of Life?

Most people choose bankruptcy as a last resort. They often have been harassed by creditors, are low on funds, and have experienced some other major obstacle in their life. However, filing bankruptcy can improve the credit score and the overall quality of life. Sure, there will be a mark on the credit file that will remain for 7-10 years, but as soon as a person receives a discharge, they can immediately start rebuilding.

The Court’s Protection Is Invaluable

A Chapter 7 Bankruptcy is the most popular petition to file. Many people have more money going out in monthly bills than they have coming in with income. A Chapter 7 case wipes the slate clean allowing the debtor a fresh financial start. On the credit report, each creditor will have a note beside their account that states “Included in Bankruptcy.” These accounts still hold some precedence to the scoring, but they are no longer held against the debtor. In as little as six months from the date of filing, a debtor can begin rebuilding and obtaining new credit.  There are certain requirements in order to qualify for a Chapter 7 bankruptcy, so it is best to consult with an experienced attorney at Zellar & Zellar, Attorneys at Law, Inc., to review your specific set of circumstances.

New Credit Is Available Almost Immediately

Before the discharge is issued, most people will begin getting flyers and pre-approved offers from car dealers and credit card companies.  While it may seem like all is lost during the bankruptcy process, it is just the beginning. Those who ask the court for help get a chance to start over. These new creditors will help to establish good accounts. Those who could not get financed before bankruptcy can certainly find plenty of loans afterward.  It is important to remember not to get in the same credit trouble as before. It is also easy to overspend or get loans that have a high – interest rates and unsavory terms.  A debtor is only able to file a Chapter 7 bankruptcy case every eight (8) years, so it is important to make sure that any new debt obtained after the bankruptcy is affordable based on the debtor’s current budget.

The FICO Score Will Improve Gradually

Some say that their credit scores start improving almost immediately. When the new credit is established, it is ranked higher than old, outdated accounts. It is possible to have a credit score that reaches the 650-700 range within a couple years after the discharge. Of course, it is imperative to have good credit management skills and to be selective about obtaining new loans. The FICO range is from 300-900. Most people find that filing bankruptcy brings their average score out of the 400-580 range. It is the first step in rebuilding.

Bankruptcy Provides Peace of Mind

There is nothing worse than being harassed by creditors. Even though it is against the law, many creditors use scare tactics to try to get debtors to pay. Not only can an experienced bankruptcy attorney, such as the attorneys at Zellar & Zellar, Attorneys at Law, Inc., help to stop creditor harassment, but they can also file the paperwork and be a support system through the whole ordeal. There is nothing better than wiping the slate clean and starting over. However, many find that the Meeting of Creditors and the voluntary petition is all a bit overwhelming. It is imperative to have bankruptcy attorneys working in a person’s best interest.  Having an attorney assist a debtor through the bankruptcy process will often insure critical mistakes are not made, which could cause the case to be dismissed.  Please contact Zellar & Zellar, Attorneys at Law, Inc., to schedule your free initial consultation with one of our experienced attorneys.

© Zellar & Zellar, Attorneys at Law, Inc., 2017; All Rights Reserved.

 

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