Today's peice of bankruptcy advice from your friendly Melbourne Florida Bankruptcy Attorney
One of the most misundertood things about bankruptcy is the impact it will have on your credit score. I hear people say all the time "If I file bankruptcy it will destroy my credit for 10 years!" That thought alone scares many Melbourne, Florida families out of even considering a bankruptcy, much less consulting with a Bankruptcy Attorney to discuss what a bankruptcy can do for them. Fortunately, this common belief is just not true. To the contrary, filing a bankruptcy is often times the quickest way to REPAIR your credit. To learn more about how a bankruptcy may actually improve your credit, read the rest of the blog below. To learn about other aspects of bankruptcy, please click on one of the tabs to the left of this page or just click on a link below.
So how can a bankruptcy improve my credit score? The answer is actually surprisingly simple. In most cases where someone is considering filing bankruptcy, they have already missed payments on their credit cards or mortgage. As these debts get farther and farther behind, the outstanding debt gets larger and larger. The account goes 30 days past due, 60 days past due 90 days, 120 days, 150 days, etc. As these debts get larger and larger and farther and farther past due, they have the effect of dragging your credit score down. These debts can continue to drag your score down for 7 years or longer. Unless you settle these debts, your credit will be damaged for a long time.
When you file bankruptcy, most of your bad debts get wiped out. Your credit report will reflect $0 balances, and the creditor can no longer report your debt past due. By wiping your credit report clean, bankruptcy has the effect in many cases of providing a significant bump in your credit score. Within 2 years, most bankruptcy filers find that their credit report is over 700 - far higher than it would have been had they not filed and left the bad debt on their credit report. All in all, bankruptcy is one of the quickest ways I know to repair your credit score and get you back on solid financial footing.
To learn more about bankruptcy and whether it is right for your family, contact Bowin Law Group to schedule a free 1 on 1 consultation with our bankruptcy attorney. We service clients throughout Brevard County, Florida, including Palm Bay, Melbourne, West Melbourne, Viera, Rockledge, Cocoa, Merritt Island, Titusville, Port Saint John and the beaches.
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