You hear a lot about credit scores these days. There is a great deal of pressure to make your debt payments on time to avoid hurting your score, which can affect your ability to obtain further debt like a car loan or mortgage. One reason many people who are deep in debt are reluctant to think about declaring bankruptcy is that they have been told bankruptcy would cripple their credit score for years.
Keep in mind, the people who want you to fixate on your credit score the most are the credit card companies. Ask yourself: would you rather have a huge amount of debt weigh you down and a great credit score or not have the debt in the first place? At Simon, Fitzgerald, Cooke, Reed and Welch, we are Louisiana’s oldest bankruptcy law firm. If you have questions about how filing for bankruptcy can affect your credit score, we can explain the process and help you sort out your long-term financial priorities.
The Truth About How Bankruptcy Affects Your Credit Score
It is true that a bankruptcy filing will temporarily lower your credit score. But it also eliminates most, if not all, of your debt. The debt that is overwhelming you financially, causing debt collectors to harass you and generally keeping your life at a standstill. In our experience, using bankruptcy to get our clients’ debt back under control has a much more positive impact on their lives than making minimum payments just to preserve their credit score would have had.
Credit scores recover after a bankruptcy filing, often in less time than it would take for you to repay your debt on your own. Within a few years, your credit score may be higher than it was before you went through bankruptcy.
Find Out How Bankruptcy Can Help Your Credit
Call Simon, Fitzgerald, Cooke, Reed and Welch at 318-550-4873 or toll-free at 318-550-4873 to schedule a consultation with one of our bankruptcy attorneys. You can also reach us by email. We have three convenient locations in Shreveport, Lafayette and Alexandria.