Improving Your Credit Through Bankruptcy
Believe it or not, bankruptcy can help you improve your credit right away. It sounds like a paradox, but in fact, bankruptcy can end the cycle of bad credit. Chances are, you are no longer able to make even the minimum payments on your credit cards, and even if you could, it might take you 25 years at your current interest rate to pay off even a modest balance with minimum payments. Bankruptcy, allows you to throw off the yoke of crushing debt and provides you the opportunity to end the cycle of debt, improve your credit and obtain a fresh financial start.
Proper lending and affordable borrowing depends on three factors:
- Credit score - your FICA credit score
- Your debt-to-income ratio
- Your savings account balance
Good lending and good borrowing that will work for you and not against you depends on your debt-to-income ratio and your bank account. A high credit score is a solid and attainable goal that can easily be recovered after bankruptcy, along with an improved debt-to-income ratio and increased savings. The key is to build a cushion and get your finances in order before incurring more debt without a well-conceived plan.
The fact is, many of our clients who are "current" have long ago lost the benefit of a high credit score. Instead, they struggle along with burdensome debt, unmanageable monthly payments and still experience an ever-dwindling credit score. While bankruptcy is not an instant remedy for your credit score, it will improve your credit score quickly with the proper advice of our experienced bankruptcy attorneys.
Bankruptcy Immediately Reduces a Bad Debt-to-Income Ratio
It allows for a future with a chance of savings. Over time, the only means to a financial future is a balanced debt-to-income ratio coupled with easy steps and advice on increasing your credit score without overburdening debt.
Do not let debt collectors, consolidators or creditors mislead you about credit after bankruptcy. The bankruptcy credit myth is a fear tactic to discourage you from getting proper legal advice, and taking the steps that will benefit you, your family and your financial health and well-being.
We can help you discharge your debt, remove judgments, establish an affordable repayment plan for your secured debt and more - all of which can dramatically increase your credit score.
At The Law Offices of Neil Crane, LLC, we provide you with a free initial consultation. In our first meeting, we will discuss your concerns about debt relief and your full financial situation. Our attorneys serve clients at offices across the Connecticut, including Hamden, Bridgeport, Waterbury, Rocky Hill and Ridgefield, and we take the time to fully inform you of all your debt relief options. True debt relief doesn't come in "one size fits all." It is our job to advise you on the option that will best suit your circumstances.
Benefits of Bankruptcy in Debt Relief and Credit Improvement
Through Chapter 7 bankruptcy, the reorganization, reduction or elimination of overwhelming debt and missed payments begins a new era of manageable debt, and good credit scores.
Chapter 11 bankruptcy allows business owners and professional practices to reorganize business liabilities and debts for proper payment treatment in order of their priority, while eliminating or reducing unsecured debts and protecting assets.
Chapter 13 allows debtors to restructure debt, to create Chapter 13 Plans with manageable and affordable three- to five-year repayment of existing arrearages while eliminating or modifying non-priority secured and general unsecured debt.
Bankruptcy filing is a federal right afforded to all Americans. Our diligent bankruptcy lawyers can help you obtain instant relief from overwhelming debt. We have been helping our clients plan for their future since 1983. At the Law Offices of Neil Crane, we know how to create financial stability, improved credit and financial growth through practical, creative and proven strategies.
Contact The Law Offices of Neil Crane, LLC
During your free initial consultation, we will discuss the impacts and the benefits of improving your credit through bankruptcy in detail. Call us today at 203-230-2233 or toll free at 888-249-3027, or complete our online contact form. When you call us, you will always speak to an attorney. We do not use voicemail. We are committed to providing excellent service and legal protection.
Se habla español.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.