How the Bankruptcy Process Really Affects Atlanta Consumers’ Credit Scores
They're right when they say your credit score won't be the same after bankruptcy - chances are, it will be better.
Despite the pervasive myth that bankruptcy will leave a permanent mark on your credit, those who file can still reach numbers of more than 750 - the Holy Grail of FICO scores, says an expert at Bankrate.com. While it is true that your score will drop immediately after filing, it can then begin a steady increase as the bankruptcy process helps you get your finances back under control. Want your credit score to climb even faster? Here are a few tips from Atlanta bankruptcy attorneys.
Before all else, make sure you have a plan in place to keep yourself from accumulating overwhelming debts all over again, whether that means weaning yourself off credit, building a realistic budget or signing up for professional financial advice. Bankruptcy isn't a get-out-of-jail-free card; it's a fresh start. You don't want to squander it and wind up back where you were before, right?
Once your debts have been cleaned up, it's time to clean up your financial records. Often times when credit doesn't dramatically improve after bankruptcy, it's because run-of-the-mill mistakes on your credit history are holding you back. Most folks wouldn't believe how common it is for credit records to contain errors, from non-existent accounts to misspelled names to incorrect personal information. But though common, those mistakes can hurt your score. After bankruptcy, it's even more essential that you take advantage of your free credit reports from AnnualCreditReport.com. Request one free report from each of the three major credit bureaus each year - and if you find errors, contact the bureaus to have them fixed.
When done correctly, bankruptcy is one of the most effective ways to transform your finances - and your life. But like anything in life, the more effort you put into, the more you stand to get out of it. For the best result, consider seeking the help of a professional. At DebtStoppers, our knowledgeable Atlanta bankruptcy attorneys can find a bankruptcy plan suited for your needs. Simply sign up for a free personal debt analysis. If you have questions or concerns along the way, we'll be here.