CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

Can Bankruptcy Help Your Credit Score? Maybe!

The average person assumes filing for bankruptcy will damage his or her credit score, and while there is some truth to this, but what many fail to consider is those considering bankruptcy likely don’t have a great outlook to begin with. It’s possible to fix this and filing for bankruptcy might actually be your fastest path to improved credit.

The best thing you can do if you are experiencing financial challenges is to honestly assess your situation. How bad are things really? If you think you can get back on track in a few weeks or a month or two, bankruptcy might not be necessary. However, if your financial struggles have been ongoing and you know your credit has already suffered, bankruptcy could actually help you restore your credit score.

What are a few of the most important reasons bankruptcy could be an option if you are concerned about your credit?

Credit Does Not Equal Cash

Having a strong credit score is important, but it’s not going to pay your bills or prevent foreclosure. Your most important concern is paying your debts in a timely manner. Your credit score is important if you are seeking a loan, which might be a solution for solving your financial struggles, but it’s important to realize your credit score is not cash in your pocket or bank account.

Improving Your Debt to Income Ratio

One of the most powerful tools you have available for helping with money problems is bankruptcy. Bankruptcy resets your debt ratio, which is an important part of your credit score. In Chapter 7 bankruptcy, much of your debt is eliminated, which means your debt-to-income ratio improves. This won’t give you a perfect credit score, but it can provide a small improvement, which can be important when you are slowly working toward financial improvements.

To learn more about how credit scores are calculated, visit this tutorial from Equifax.

Thinking Long-Term

It might be best to consider bankruptcy a “long game,” which means patience will eventually pay off. Your goal is not necessarily to have a high credit score, but an overall healthy credit profile. In the long run, bankruptcy can help you get there and demonstrate you are a smart risk for lenders.

Bankruptcy Provides a Fresh Start

Financial problems are stressful and not being able to pay your debts can lead to a number of problems in your life. Bankruptcy offers a fresh start and can put you back on track. If you are tired of dealing with years of debt that feels as if it never gets more manageable, bankruptcy provides a path to financial freedom. For many, filing for bankruptcy is the fastest and only way to improve their credit score.

If you would like to learn more or discuss your financial situation with someone who understands the bankruptcy process, we can help. To schedule a time to speak to a qualified bankruptcy attorney, contact the Law Offices of Robert M. Geller at 813.254.5696.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

What to Do Now If You Intend to File for Bankruptcy Next Year

If you intend to file for bankruptcy in the New Year, there are certain steps you must take to ensure...
Read More

5 Lessons You’ll Learn from Filing for Bankruptcy

Looking for a bankruptcy lesson plan? Here are five things you can learn from filing for bankruptcy. Filing for bankruptcy...
Read More

3 Big Bankruptcy Stories from 2022

Bankruptcy is a serious financial decision that can have long-lasting effects. This is true even for multi-million dollar businesses. In...
Read More

5 Questions You Should Ask Before Filing for Bankruptcy

If you're considering filing for bankruptcy, it's important to know what you're getting into. What questions should you ask before...
Read More

Top 5 Reasons to File for Bankruptcy

What are the most common reasons to file for bankruptcy? There are many valid reasons for filing for bankruptcy. According...
Read More

5 Lessons Learned from Filing for Bankruptcy and How to Avoid the Biggest Financial Mistakes

People struggling with the biggest financial mistakes often consider filing for bankruptcy. Bankruptcy can provide relief from overwhelming debt. However,...
Read More

Things to Bring Along to Your Bankruptcy Consultation

Are you considering filing for bankruptcy? If so, one of the most important steps is to consult with an attorney...
Read More

Do You Need a Chapter 7 Bankruptcy Document Checklist? 3 Things You Need to Know

Filing for bankruptcy requires organization. A chapter 7 bankruptcy document checklist can make the process easier. No one ever plans...
Read More

Will a Bankruptcy Document Preparer Save Me Money?

While it may seem like hiring a bankruptcy document preparer will save you money in the short term, this is...
Read More

Robert Geller Shares Advice for People Considering Mortgage-Modification Programs

Robert Geller’s co-authored article “Can Debtors Afford Mortgage-Modification Programs?” was recently featured in the fall 2022 edition of the Consumer...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions