Once you have decided that bankruptcy is the only option to help you become financially stable again, the first step you want to take is to seek out a Houston bankruptcy attorney.
Then you need to proceed with an open mind realizing that the bankruptcy is not something to be ashamed of or embarrassed over, but that it is a resource for getting you back on your feet financially.
Many individuals worry that their bankruptcy is going to affect their credit score and that they will not be able to get credit in the future. What they don’t realize is that their poor financial history has already had a dramatic impact on their credit rating. The only way of getting this back on track is a by starting fresh after the bankruptcy.
It is highly important to adopt a financial management practice where you are not relying on credit when it is not necessary. While your bankruptcy will show on your credit score what you have to remember is that the bankruptcy is going to reset your debt ratio in the end. This means that your debt to income ratio is going to improve because of your bankruptcy.
Your bankruptcy is a dramatic but positive way to rebuild your credit profile so that it becomes healthy once again. It is important to really understand how your credit score is determined. This in turn will help you realize what types of debt really do have a bad effect on your credit score.