Bankruptcy Credit Myth Debunked

There is a myth that filing for bankruptcy damages your credit. Many people even assume that a bankruptcy prevents you from getting credit again in the future.  In fact, many people miss out on the freedom from debt and opportunity to rebuild strong credit through bankruptcy due to these false ideas. However, the good news is that these ideas are often completely untrue.

Bankruptcy can actually boost your credit score after your debts are discharged. This is because what actually damages your credit score is unpaid bills, delinquent accounts, and high balances.   Once these are resolved in bankruptcy,you can establish a new payment history and boost your score over time. Erasing the negative marks on your score through bankruptcy can be the fastest way to a new start. 

Many people find getting credit after bankruptcy not to be hard, but almost too easy. In fact, you may even need to be a bit wary of new credit following a bankruptcy as some lenders are out to offer easy credit with terrible terms and fees. Following a debt discharge, you have a unique opportunity to rebuild your credit through a plan. Take your time to rebuild your credit and obtain secured lines of credit down the road when your score is solid enough to obtain the best interest rates.