Filing Bankruptcy Will Ruin My Credit
A bankruptcy will remain on your credit report for up to ten (10) years. However, the perceived hit to your credit is an illusion that your creditors don’t want you know about. You see, if you’re already experiencing wide spread defaults on your bills, or even your mortgage, then your credit score has already been adversely affected.
In fact, not taking any action toward resolving your money problems will cause significant and long-term damage to your credit score. Late payments and defaults will stay on your credit report for up to seven (7) years and if those debts are not discharged or paid, they can haunt you for all eternity. The biggest hit to your credit score is unpaid debts; not a bankruptcy.
Filing bankruptcy will eliminate old debts and completely clear your credit report of all debts, period. This fresh start by filing bankruptcy, cleans the slate and can actually cause your credit score to go up. Yes, I said that your credit score will likely increase after bankruptcy. Your creditors don’t want you to know this and they will do everything they can to get you to pay them as much as possible.
The folks over at the National Bankruptcy Forum agree, according to their recent blog article entitled, “Has the Biggest Reason Not to File Bankruptcy Already Happened to You?” This article points to the fact that being late, or failing to pay your debts has more of a negative impact on your credit score than filing bankruptcy. Why continue to suffer and throw good money after bad? If you are considering bankruptcy, call your local bankruptcy lawyer today.
