Filing for Bankruptcy Can Improve Your Credit Score


Deciding whether to file for bankruptcy is not easy. One main concern is whether your credit rating will be hurt so much that you won't be able to get a loan or home mortgage, even at a high interest rate.

This may surprise you: In many cases, the damage done to your credit score by filing for bankruptcy isn't nearly as bad as you might expect. It may take a while, but your credit score will likely increase so you're once again able to get loans at competitive interest rates.

You see, most people who are far behind in their bills don't have good credit scores to begin with. Often, they already have late payments, high balances, charged-off accounts or collection accounts. As a result, some consumers may see their credit scores increase after filing bankruptcy.

How does this happen?

Please see full article below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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