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Will my credit be ruined
forever? |
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| No, your credit will not be ruined as a result of a bankruptcy filing. In most cases, your credit rating is already very low. A bankruptcy filing is the most effective and affordable way to rebuild your credit score and your creditworthiness. One component of your credit score is your debt to income ratio. Right now, your debt to income ratio is probably quite high resulting in a low credit score. Once you eliminate your debt in the bankruptcy, your debt to income ratio drops dramatically and your credit score will increase as a result. |
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| A bankruptcy filing will generally remain on your credit report for 7 to 10 years. While this information is on your credit report, it doesn’t mean that you won’t be able to get credit in the future. In most cases, you will be offered credit cards and be eligible for other types of non-real estate credit within 6 to 12 months post-bankruptcy. It generally takes about 2 years post-bankruptcy to become eligible for mortgage debt. Be very careful about getting back into the credit card game after your bankruptcy. It is much more desirable to pay as you go with cash, checks, or a debit card. |
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Click here to request your free bankruptcy consultation now! |
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