You may be wondering if filing for bankruptcy will prevent you from buying a home or a new vehicle in the future. What may surprise you is that filing for bankruptcy can increase your credit score. This will put you in a better position to make large purchases like a house or car.
Here’s how it works: Credit bureaus take into consideration your debt to income ratio when deciding your level or risk. So, if you get rid of your unsecured debt through bankruptcy, your ratio will improve. When the ratio improves, your credit score can also increase as a result.
Keep in mind that this is not something that will happen overnight. The point is that bankruptcy will not destroy your credit forever and prevent you from getting a loan to buy a home or car after discharge. Bankruptcy is a tool to help you turn your financial life around and begin again fresh.
Call our office today for a free consultation to learn more about the options that will work best for your situation.