Forget What You Have Been Told
When trying to raise your credit score by any amount, nonetheless one hundred points, the furthest thing from most people’s minds is bankruptcy. Nevertheless, that is exactly how many of our clients are able to regain control of their finances and truly increase their credit score.
I am sure you doubt bankruptcy’s ability to raise your score when you know for a fact that having a bankruptcy on your credit report will adversely affect your score. Despite the fact that bankruptcy does indeed create a negative mark on your report, raising your credit score by one hundred points in nine months is not an exaggeration of the truth or an a-typical result. This is actually the average result for the majority of our clients.
How It Works
Although our client’s credit scores encompass the whole range, most people come to us with scores ranging from 450 to 650. The most typical client will have approximately a 550 middle-range score.
Once our client’s file their bankruptcy their score drops substantially and immediately. For example, one of our clients had a 530 credit score when we filed. Upon filing this particular client’s score dropped to 478. Three months after filing, the bankruptcy was discharged, which effectively changes all debts that were dischargeble and included in your bankruptcy to report a zero balance and stop reporting negative information.
Once the client received the discharge their score jumped to 632. This is a huge increase of over one hundred points in literally three months and one day from the bankruptcy filing, to be precise for this particular example.
Effective Credit Repair Information At the Right Time
We understand that although our client’s come to us for legal advice and consumer law assistance, they really need credit repair tools as well. As a commitment to providing the absolute best service to our clients, our clients receive specific advice for their unique situation so our client’s credit scores can keep growing once their bankruptcy needs have been met.
This particular client followed our post-filing advice on credit repair and six months after the case closed, that client’s score has raised an additional 30 points resulting in a final 662 score. A score of 662 compared to the 530 the client had just nine months earlier, means huge savings on interest rates and just plain and simply – more options as a consumer, a lot more options.
Make Informed Decisions
Now raising your credit score is not the only reason to file for bankruptcy. However, once you know the truth about bankruptcy and credit scores, you can make a more informed decision about the future of your finances. Click here to be read our blog about qualifying for a Chapter 7 bankruptcy.
If you need further information or assistance to determine whether or not bankruptcy is the best option for you, talk to one of our lawyers by scheduling an initial consultation. Consultations can be scheduled telephonically or in person.
