If you are going bankrupt, why are you worried about your credit score?

One of the most perplexing things a bankruptcy attorney can come across is clients (and potential clients) who are overly obsessed about their credit scores.

With some folks, its almost as if the FICO score itself is some sort of IQ number, indicative of intelligence, self-worth, or some other positive attribute.

If you are thinking of bankruptcy because bills have gotten out of control, the last thing you should be worried about is exactly what your credit score is.

One of the worst things for a credit score is having many late payments. Once your score is ruined this way, you might find that in a few months after filing for bankruptcy, your credit score is actually higher, because you now have no more unsecured debt to pay off.

If you get in the (good) habit of paying off your bills again after you file a bankruptcy case, you should have little to worry about, as your credit score should begin rising within a year.

 

By Doug Beaton

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