Many people are afraid to file bankruptcy because they think it will wreck their credit score. While bankruptcy is not good for your credit, it does not have the stigma it once had. If you have serious debt problems, filing bankruptcy may actually be the quickest way to improve your credit score.
The quickest way to rebuild your credit score is to concentrate on three major factors:
This will go to zero if you file bankruptcy. So it is important to obtain new credit as soon as possible after filing, even if you have to get a secured credit card.
If you file bankruptcy, unsecured debts such as credit cards balances will be wiped out, so you will be better able to stay current on payments on your new credit cards and obligations. The important things is don't be late with payments each month. And you should never charge more than you can afford to pay off each month.
Available credit refers to the limits on your credit cards. To improve your credit, you should try to keep your credit balance at 10 percent or less of your limit and never exceed 30 percent. For example, if your credit card has a $1,000 limit, try to keep your credit balance at $100 or less and never go above $300. Your credit balance is the amount you carry over from one payment period to the next.
A bankruptcy filing will remain on your credit report for 10 years.
Tax liens and mechanics liens can be stripped off of your home provided there is no equity. But the taxes may still need to be paid through your plan with no penalty or interest.
To schedule a no-cost and no-obligation consultation with me, attorney Joel Gross, call 352-536-6288 or send an email. Evening and weekend appointments are offered for those who cannot meet during business hours. Spanish-speaking service is available.
The Law Office of Joel L. Gross is a debt relief agency that helps people file for bankruptcy relief under the Bankruptcy Code.