Hi I’m attorney Kevin Williams, and I’d like to talk to you about how
bankruptcy can be a Credit Score and Financial Improvement Tool.
Sounds pretty incredible, doesn’t it – but it’s true.
Most folks think that credit scores are determined by their payment history. And
that’s partially true – to have a good credit score, you need to have consistently paid
your debts on time.
But payment history is only part of the equation. The other part – and it’s a big one
– is your debt to income ratio. Simply put, the higher your total debts, the lower
your score.
You can have a perfect payment history and still have a low score if your debt level
is too high.
And that’s the case with many people who need to restructure their finances –
they’ve got a great repayment history but debts so large that their scores are in the
basement.
So for people like this – and most people who file for bankruptcy – their scores
actually improve after the bankruptcy process is completed because, thanks to the
elimnation of debt, their debt to income ratio improves and thus their score does,
too.
Now, make no mistake about it: completely fixing your credit score will take time
and good management of your debts after your restructuring is completed. And
a bankruptcy filing – like other negative information – stays on your credit report
for a long time. But that’s true even if you don’t go through a debt restructuring
process.
And, much more importantly, your finances will be immeasurably improved because
much if not all of your debt will simply be eliminated – and it hard to beat that!
Our firm has extensive experience in assisting people just like you with a
customized, personal, goal-based approach to bankruptcy, debt relief and
other financial improvement tools. If you’re in Middle Tennessee, please
call me today at 615-264-8249 for a no-charge consultation to answer any
questions you might have.
