One of the common concerns people have about filing bankruptcy is what impact it will have on their credit score.
Although I think people worry too much about credit scores, there is some legitimate concern about making sure credit reports and credit scores don’t hinder the purchase of a new home.
In a 2007 SmartMoney.com article, the author says:
“In many cases, the damage done isn’t nearly as bad as expected. Over the long run, obtaining a score high enough to make you eligible for very competitive rates isn’t out of the question.”
Filing bankruptcy could help a debtor’s credit score over the long term. Especially if high balances and late payments have negatively impacted the credit score already.
“If your debt payments are crushing you, bankruptcy will give you a much-needed fresh start,” according to the author.
One of the credit score improvement strategies suggested is to make sure the credit report accurately reflects the discharge of debts and zero balances.
Clients should check their credit report about 4-5 months after the bankruptcy discharge so you can make sure debts are being accurately reported.
At Nancy L. Thompson Law Office P.C. we’ve been able to obtain many damage awards for clients who file bankruptcy and then continue to face debt collection from creditors in violation of the automatic stay.