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Bankruptcy could be the right option if your credit is poor

On Behalf of | Nov 24, 2017 | Bankruptcy

When the holidays approach, you want to spend and buy things for the people you love. Unfortunately, if you’re struggling with debt, that feels like the last thing you can do.

One of the best gifts you can give yourself this year is understanding if bankruptcy could be the right solution to your problem. When you can’t meet your financial obligations and don’t see a way to reduce what you owe, a bankruptcy might be the best option.

How do you know it’s right for bankruptcy?

To start with, if you already have damaged credit, you may not suffer much worse credit with a bankruptcy. It will impact your score for several years depending on the type of bankruptcy you want to claim, but within a year, you’ll begin to see your credit score rise again.

After a bankruptcy, you’re able to start making payments on time, which immediately begins to benefit your credit. Over time, your score continues to rise steadily, making it easier for you to obtain credit or a mortgage at a good rate. In the meantime, you have more money available to you with fewer financial obligations. This gives you time to save money and get back on track.

The facts show that those who file for Chapter 7 bankruptcy usually have an average credit score around 538.2. Within six months of the discharge of a bankruptcy case, most people see an average score of around 620.3, a substantial improvement. If you think this might be the right option for you, your attorney can help you start the process. Our website has more information.