Will a Bankruptcy Affect My Excellent Credit Score?

Are you drowning in debt even though you have an excellent credit score? Are you thinking about filing for personal bankruptcy and worried about the impact it will have on your credit? image-faqs

Remember, bankruptcy and financial difficulties are common among all people. As of September 30, 2014, 935,420 Americans filed for non-business bankruptcy. A bankruptcy can help anyone struggling to get by, living check-to-check, even if his or her credit is excellent.

A Chapter 7 or Chapter 13 can eliminate debt like credit card debt, medical bills and certain taxes. In addition, when you file for bankruptcy, an automatic stay goes into effect that halts collection attempts, including lawsuits.

In an interesting story, recently a writer for DailyFinance named Andrew Ward told readers that he would be filing for bankruptcy this year even though he has good credit.While my near 700 credit score exemplifies my ability to pay my bills, I lacked on the management side as I piled on debt while trying to establish myself professionally,” Ward wrote.

In his piece, Ward described the debt he accumulated over time, opening a credit card at the age of 19 to pay for college textbooks. He also wrote that he accumulated debt by driving an older vehicle that needed repairs. “If I need this to get by, then the purchase is justified,” Ware wrote about his spending habits.

After leasing a newer car after graduating and moving to Los Angeles, Ward wrote that he faced challenges with payments. In addition to another cross-country move, Ward wrote that he had to take out a personal loan and complete balance transfers to stay afloat.

After receiving what he described as a “dream job, a full-time paid writing position”, Ward said that his debts continued to mount and his savings dwindled. He then spoke to an attorney about Chapter 7 bankruptcy.

“The ten-year mark of bankruptcy on my record, as well as the credit score hit, is worth getting out from under crippling debt. While anxious, I’m excited to finally admit my years of errors and move forward as the person I have since grown into,” Ward wrote.

Should I Talk to a Bankruptcy Attorney About My Debt Issues?

As this story shows, financial stress can happen to anyone. With a sluggish economy, bankruptcy is an excellent option for people who are struggling financially because of work-related investments and bills.

If you are struggling with debts and/or having issues with your income, our bankruptcy attorney is here to assist you. Let him help you avoid collectors and overcome your financial obstacles.

It should be noted that although a bankruptcy will affect your credit score, there are ways to rebuild your credit, including getting a secured credit card and paying your current expenses on time.

Law Firm of Kevin D. Judd Maryland and Washington DC bankruptcy attorney

Judd’s Judgment: Chapter 13 bankruptcy is an option for people who would like to continue to make payments and retain ownership of certain properties.

Source: http://www.dailyfinance.com/2014/11/24/bankruptcy-can-happen-even-with-a-700-credit-score/