What Will Filing Bankruptcy Do to My Credit?

Orlando Bankruptcy Lawyers

Just the thought of filing bankruptcy may be very troubling for you. You likely have many questions such as “What will happen to my credit?” This is a concern for many consumers who worry that filing for bankruptcy will irreparably damage their credit, taking away future opportunities. Nothing could be further from the truth.

At the Price Law Firm, we represent clients throughout central Florida in all types of consumer bankruptcies, including Chapter 7 and Chapter 13. Our founding attorney, Charlie Price, has been through a bankruptcy himself and can personally attest to the benefits of achieving a fresh start through bankruptcy.

How will bankruptcy impact your credit? To discuss your case with an attorney, call 407-834-0090 for a free consultation.

Bankruptcy Almost Always Helps Credit

The unfortunate truth is that if you are at the point where you are considering bankruptcy, your credit is already likely severely damaged. It could take years to rebuild, if you can at all. By filing for bankruptcy, it’s likely that your credit scores will dramatically improve because bankruptcy eliminates late payment, collection and charge-off notations from your credit report, and also resets the all-important balance-to-credit line ratio. These changes, as a direct result of filing the bankruptcy, will often cause credit scores to rise substantially.

Most consumers see their credit scores rise 100 to 150 points within a year after filing bankruptcy, with scores in the 600 to 650 range. Meanwhile, those who go the route of debt settlement are often left with scores in the 450 to 550 range.

To learn more about how bankruptcy can help you get your credit back on track, contact us for a free consultation.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

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