Most people decide to file bankruptcy when they find they can’t pay their current debts. Not being able to pay has severely reduced their credit score and filing bankruptcy shows the credit bureaus that you are being proactive and taking steps to improve your situation. About a year after filing bankruptcy, you will find that your credit score should have improved because you aren’t missing loan payments
It might sound backwards that your credit score would improve after filing bankruptcy, after all, it means that your creditors probably won’t get paid. The fact is that they probably wouldn’t have been paid in full anyway even if you hadn’t filed bankruptcy.
While they would have retained their rights to collect on their debts if you ever came into money, it is often the case that debts (especially credit card type debts), are written off by these companies long before you are able to pay it back completely.
It can take years for a debt to be written off and in the meantime the creditor would be doing what it could to seize your assets and garnish your accounts.
Before you decide to file for bankruptcy, it’s imperative that you consult with an attorney. If you have further questions or concerns about bankruptcy, feel free to contact us through our website or by calling 205-879-2447.
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