You have probably heard that filing for bankruptcy ruins your credit score. However, the truth is that bankruptcy can actually improve your credit score if you take the right steps once the process is complete.
This week we discussed "life after bankruptcy" at length on our blog. We talked about rebuilding credit and establishing emergency savings as well as qualifying for a loan after filing for Chapter 7 or Chapter 13 bankruptcy.
Filing for bankruptcy can cause a person's credit score to take a hit, but those negative effects aren't permanent. As we have been discussing this week in previous posts, it is possible to start rebuilding your credit right after your bankruptcy discharge takes place.
It is both sad and infuriating that con artists are targeting the people who can least afford to be scammed; those deeply in debt desperately looking for a way out. The scammers frequently call themselves "debt settlement" experts with special expertise in getting creditors to forgive all, or at least part, of consumer debts and make the customer "debt-free." The problem is, and the debt settlement industry admits this, about two-thirds of clients get no relief at all. Federal and state regulators say he success rate is more like 10 percent.
Before filing for bankruptcy, The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 requires debtors to complete credit counseling from a government approved organization within 180 days before filing. Debtors must also complete a debtor education course before the discharge of the bankruptcy. Click the link below for more information on credit counseling: