If you owe past due amounts on credit cards and loans and are having trouble meeting your monthly bills, filing for bankruptcy can provide you with the fresh start you need to get back on track financially. Most people worry about how filing will impact their credit score, but eliminating your debt can actually have a positive impact in the long run. After your bankruptcy is completed, there are easy steps you can follow to begin rebuilding your credit in as little as a year.
Bankrate advises that while a bankruptcy will generally remain on your credit report for anywhere from seven to ten years, your credit score may get better within just a few months after filing.
If you were struggling with lots of debt equaling more than what you make each month, this reflects badly on your credit report and lowers your score. Not being able to make regular payments and having accounts handed over to collection agencies does major damage as well. Under these circumstances, the impact of filing bankruptcy is most likely not as bad as continuing in your current situation of high debts, unpaid balances, and late or missed payments.
Within the first year of filing for bankruptcy, you may notice your credit rating slowly increasing, even if by no more than a point or two each month. Nerdwallet recommends taking the following four steps to help speed this process:
Using this formula, Bankrate claims that most people can achieve a solid credit score in as little as a few years. To find out more about taking charge of your finances and improving your credit, call or contact the Law Office of Karen E. Evangelista, P.C. online today. We can arrange a free consultation with an experienced Rochester bankruptcy attorney who can help you get back on the right financial track.