One of the biggest concerns that many people have about filing for bankruptcy is in regards to what happens to the individual’s credit. While filing bankruptcy does have a negative impact on an individual’s credit report, it is not the end of the world by any means. In fact, a new study that was released by Lending Tree that analyzed the impacts of bankruptcy.
The most substantial findings may help ease some concerns that debtors may have about filing bankruptcy because it could be very beneficial to one’s future success. One of the key findings from the study stated that “43 percent of people with a bankruptcy on their credit file have a credit score of 640 or higher within a year of bankruptcy. Within two years of bankruptcy, 65% have a credit score above 640.”
After bankruptcy, one of the most important things a person can do is to obtain a secured credit card. They should be sure to put small charges on the credit card that they know they can afford to pay back. It is crucial to make each monthly credit card payment in full and on time in order to build up credit again.
If you have questions about bankruptcy, contact our firm today.
Our firm understands that so much of your future is on the line in matters of divorce, family law, bankruptcy, and estate planning. Before taking any sort of legal action, it is important to discuss your legal matter with an experienced attorney. Contact The Radol Law Firm to discuss any divorce and family law matters you may be faced with.