Bankruptcy’s Effect on your Credit Score

Attorney Fred Boyk has explained a question asked by many in our September Edition of The Boyk Bulletin.

Many of Attorney Fred Boyk’s clients are concerned about maintaining a high credit score. This has allowed them to get a number of credit cards, unsecured loans, and home mortgages on reasonable terms as they have always paid every bill on time in the past. However, these same people are sometimes very deep in debt and have no way of paying their monthly bills from their earnings.

Chapter 7 Fresh Start Bankruptcy

The above scenario equals that these people are living a lie. With continuous borrowing to maintain a high credit score, they are not allowing themselves financial stability. In these instances, Chapter 7 fresh start bankruptcy can help individuals such as this live within their means.

Filing bankruptcy reduces a person’s credit score in the short term, but after the bankruptcy, they credit score will normally increase because there is much less debt.

If an individual have regular earnings, in most cases they are able to get a car loan just four months after filing bankruptcy. Home loans are available through FHA just one year after a bankruptcy discharge.

Overwhelming Bills: What to Do

Attorney Fred Boyk advises anyone in a situation in which their bills are overwhelming, to contact him for a free consultation. During this talk, you can discuss your situation with attorney Boyk and see if bankruptcy is a good choice for you and your family. Call our office at 800.637.8170 to speak to Fred about how he can help your family get over this hurdle. 

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