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5. Bankruptcy as a Financial and Credit Score Improvement Tool

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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.


©Copyright by Kevin T. Williams. All Rights Reserved
Admitted to practice in Tennessee and Virginia.
Not certified as a Consumer Bankruptcy Specialist by the Tennessee Commission on Continuing Legal Education and Specialization.
Debt relief and bankruptcy practice limited to Tennessee.
This web site is designed for general information only.
The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.
We are a debt relief agency. We help people file for relief under the bankruptcy code.