One of the most common questions regarding bankruptcy is “what does bankruptcy do to my credit?”
At ARM Lawyers, we do more than simply help you eliminate your debt. We will work with you to rebuild your credit score!
More often than not, debtors report an INCREASE in their credit score after filing for bankruptcy. How can this be possible? For starters, most people who file for bankruptcy already have a low credit score. Most people consider filing for bankruptcy after already missing payments or maxing out credit cards. These are two heavily weighted factors in credit scores. After a bankruptcy, these debts are discharged and your credit score improves. Moreover, your debt-to-income (DTI) ratio will almost invariably improve. DTI is another factor lenders use in determining your credit.
Not convinced? Let’s look at the data. In March of 2018, LendingTree, an online loan marketplace, released a study of the effect of a bankruptcy filing on the future ability to borrow. The study clearly evidenced that bankruptcy does not sentence an individual to low credit scores. Moreover the study showed that borrowers can quickly increase their scores to over 720!
So how do we do it? We’ve partnered with 720creditscore.com to provide “7 Steps to a 720 Credit Score” to all of our clients FOR FREE. That’s right. At no additional cost, all of our clients are enrolled in this 14-week program ($1,000 value). In this program, you will learn how to rebuild your credit the right way. You will also learn:
- Why most credit scores are wrong;
- Which credit cards actually hurt your credit score;
- How to stop lenders that report the wrong information;
- How to re-establish your credit after a bankruptcy foreclosure, or short sale.
Interested in learning more? Simply contact us and we can provide you with more information!
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.