01/18/2019
S'MORE KNOWLEDGE
Bankruptcy and credit scores:
Chapter 7 is a credit score killer, no doubt. But, if you need a discharge of credit card, medical bill, personal loan debt and can ‘hunker down’ for a couple of years after your Bankruptcy, it is NOT beyond repair. We can give you some tips to repair your score post-bankruptcy if Chapter 7 is an option and your choice.
Chapter 13 cases are unique. They do require some sort of payment plan; however, rather than being dictated by your creditors or by the amount of your debt, as is the case with ‘debt settlement’ companies, the amount you will pay to your creditors will basically be the amount that you can AFFORD to pay, based on your current income and expenses.
Also, and perhaps more importantly, the great majority of Chapter 13 cases result in an INCREASE in your credit score going forward. Most of my clients emerge from Chapter 13 with scores upwards of 660 with a few reported above 700...pretty good scores.
