November 10th, 2008
Filing a bankruptcy can improve your credit score, especially if you have bad credit. When you file for bankruptcy and eliminate your debt, your income to debt ratio will improve, thereby improving your overall credit score. Also, the creditors know that you cannot file another bankruptcy for a certain period of time, and you become a better credit risk. If you file for a Chapter 13 bankruptcy, you can often use your payments that are being made to the Trustee as a credit reference. If you have good credit, then filing for bankruptcy may damage your score.
Posted in Chapter 13 Bankruptcy, Concerns About Filing For Bankruptcy, Effects on Credit | No Comments »
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