Four ways bankrupcy could help youDid you know that more than 500,000 Americans declare bankruptcy each year? While unfortunate, it’s helpful to know that you are not alone when it comes to dealing with a bankruptcy. Even after your bankruptcy is discharged, there is the aftermath to contend with as well; namely, repairing your credit.
With so many people experiencing bankruptcy and so much financial data going through the credit bureaus, the chance for error is great. That’s why it’s imperative that you review all of your credit report information for accuracy, particularly the data surrounding the specifics of your bankruptcy. We’ll walk you through why it works and what to do so you can start repairing your credit today, even with a bankruptcy in your past.
How does a bankruptcy affect your credit score?,
Having a bankruptcy on your credit report can be devastating to your credit scores. According to FICO, for a person with a credit score of 680, a bankruptcy on your credit report will lower your score by 130-150 points. For a person with a score of 780, a bankruptcy will cost you 220-240 points. That one event immediately drops you several categories lower and impacts your ability to access credit, and yes, the higher your initial credit score is, the more it falls.
You might not be eligible for future loans or credit cards, and if you are, you’ll most likely end up paying much higher interest rates. Not only that, the amount you can borrow will probably become limited. While filing for bankruptcy may be the best financial decision at this point in your life, it’s still important to understand how and why it affects your credit.
Can credit repair help you in Florida to achieve financial stability? Chapter 13 Bankruptcy
Chapter 13 is a reorganization bankruptcy designed for debtors with regular income who can pay back at least a portion of their debts through a repayment plan. If you make too much money to qualify for Chapter 7 bankruptcy, you may have no choice but to file a Chapter 13 case. However, many debtors choose to file for Chapter 13 bankruptcy because it offers many benefits that Chapter 7 bankruptcy does not (such as the ability to catch up on missed mortgage payments or strip wholly unsecured junior liens from your house).
In Chapter 13 bankruptcy, you get to keep all of your property (including nonexempt assets). In exchange, you pay back all or a portion of your debts through a repayment plan (the amount you must pay back depends on your income, expenses, and types of debt). For this reason, Chapter 13 is commonly referred to as a reorganization bankruptcy. Typically, Chapter 13 bankruptcy is for debtors who can afford to make monthly payments to get caught up on missed mortgage or car payments or pay off nondischargeable debts such as alimony or child support arrears.
- Credit Repair Attorney in Florida
- Credit Repair Company in Jacksonville
- Bankruptcy Removal in Miami
- Credit Repair Attorney in Tampa
- Repair Credit in Orlando
- Bankruptcy Removal in St Peterburg
- Credit Repair Attorney in Hialeah
- Bankruptcy Removal in Tallahassee
- Credit Repair Company in Fort Lauderdale
- Credit Repair Company in Port St. Lucie
- Credit Repair in Cape Coral
- Repair Credit in Pembroke Pines
- Credit Repair Company in Hollywood
- Bankruptcy Removal in Gainesville
- Credit Repair Attorney in Coral Springs
- Bankruptcy Removal in Miami Gardens
- Credit Repair Company in Clearwater
- Credit Repair in Pompano Beach
- Credit Repair Attorney in Pal Bay
- Credit Repair Company in Davie
- Repair Credit in Miami Beach
- Repair Credit in Boca Raton
- Repair Credit in Sunrise
- Bankruptcy Removal in Palm Coast
- Repair Credit in Deerfield Beach
- Repair Credit in Boynton Beach
- Repair Credit in Fort Meyers
- Repair Credit in Kissimmee
- Bankruptcy Removal in Delray Beach
- Bankruptcy Removal in Daytona Beach
- Repair Credit in Coconut Creek
- Credit Repair Attorney in Ocala
- Credit Repair Attorney in Sarasota
- Credit Repair Company in Doral
- Credit Repair in Pensacola
- Repair Credit in Bradenton
- Repair Credit in Coral Gables