Bankruptcy Lawyer Washington DC

I would like to address the issue of your credit score.  Many of my clients realize there credit score is already rock bottom when they call my office in Washington DC.  They realize that when they file for bankruptcy that there is really nothing that will happen to their credit score since there is no where to go but up.

Others though call my office and are concerned what will happen to their credit score if they file for bankruptcy.  I remind them that if they are considering bankruptcy it probably means their debt-to-income ration (one of the primary formulas used to calculate your credit score) is probably way out of line already.  When you file for bankruptcy, you wipe away most, if not all, of your credit.  That brings you debt-to-income ratio to become a really good score.  Now, of course you bankruptcy stays on your credit report for up to 10 years but many of my clients get credit card solicitations within the year.  Why?  Because credit card companies know you cannot file for another 8 years so they know there is a good chance you will actually pay them back.

I also advise my clients and you that don’t push off the next 2-5 years trying to pay off your creditors if there is a good chance that you will not be able to and only after a few years you will file for a chapter 7.  If you file now, you can start rebuiliding your credit during that time.

If you would like a free over-the-phone consultation from me please give me a call at: (202) 540-9224.  I look forward to hearing from you.

This entry was posted on Tuesday, November 10th, 2009 and is filed under Chapter 7, Featured.