How Will Filing Bankruptcy Affect Your Credit Score?

March 18, 2021 | By Steffens Law Accident Injury Lawyers
How Will Filing Bankruptcy Affect Your Credit Score?

How will filing bankruptcy affect your credit score? It can be a pretty scary thought. The good news is, often your credit score has nowhere to go but up! Filing bankruptcy in Nebraska may provide the perfect opportunity to improve your credit rating while getting a fresh start.

Where is Your Credit Score Now?

First, take a look at where your credit stands right now.  If you have more than one past due credit card or loan, a few collection accounts, or repossessions, your credit score is probably in a bad spot already. Yes, the bankruptcy will show up on your credit report.  But, filing bankruptcy will wipe the bad debt away.  A month or so after your bankruptcy is over, your credit report will show that you no longer owe those debts!  The old debts won’t continue to drag you down.  Finally, you’ve given your credit a chance to improve.

How Will Bankruptcy Affect Your Credit Score? It's Often the Fastest Way to Rebuild Your Credit!

You can try to keep making the payments on your debts, but realistically, how long might it take you to pay them off, in full?  Until a past due account is finally paid off, your score has already taken a major hit, and you run the risk of sinking further into debt.

By filing bankruptcy, your bad debt is gone in just 100 days! Shortly afterwards, you’ll get new credit card offers in the mail.  Why?  New lenders know you finally can afford to repay them.  As long as you’re careful, and don’t over-extend yourself, you can get a new card, pay it off each month, and rebuild.  Then, move up to a bank loan, and faithfully make each and every payment.  We’ve even had at least a dozen clients get approved for home loans within a year of filing bankruptcy.  And those are just the clients that have told us their success stories—no doubt many more have as well, but just didn’t let us know! 

By Not Spending Money on Credit Card Payments, You Can Actually Save Money.

The best way to help your financial situation is not to simply improve your credit score. The goal should be to save money, build a nest egg, and get yourself in a position where you’re not forced to rely on credit cards. By filing bankruptcy, and no longer struggling to pay those credit cards, (maybe even robbing Peter to pay Paul), you will allow yourself the opportunity to save money and invest in your financial future.

At Steffens Law Office, our experienced and knowledgeable Nebraska banruptcy attorneys are dedicated to helping you get a fresh financial start and we know that we can help you. Please contact our office online or call us at 308-872-8327 for more information.