There is a misconception that filing for bankruptcy damages your credit and prevents you from securing credit in the future. Unfortunately, this is one of the most common excuses people have for not seeking debt relief help through bankruptcy. This misconception can do more harm than filing for bankruptcy in many cases, as it prevents people from making an educated decision to seek financial relief.
The Truth And Consequences
Filing for bankruptcy will not negatively affect your credit score. In fact, it will have no effect on your credit score at all. In addition, you can still take out a loan, obtain a credit card, or make a large purchase within a year of filing for bankruptcy. You can also take out a mortgage and buy a house. You just need to make sure that you have the financial means to maintain the debt if you go through bankruptcy again. It is also important to explore other options for debt relief as well. Filing for bankruptcy can actually increase your credit score. Many people who declare bankruptcy find that their credit score has gone up after filing. This is because they have eliminated their debt and are not paying interest on it anymore. As a result, they are able to pay all of their bills on time and can build good credit.
If you are experiencing financial hardship or are working to rebuild your credit after a debt disaster, call one of our Fort Worth bankruptcy lawyers today to review your options for getting out of debt.