Fixing Bad Credit Scores after Devastating Bankruptcy

| November 21, 2011 | 0 Comments
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When you think of bankruptcy you may imagine a business running out of money. This is definitely true to some extent. Any business at any time can go bankrupt; therefore, bankruptcy is not something that you need to look out for. Before further discussion on the topic let us first define what bankruptcy actually means.

What is Bankruptcy?

Bankruptcy comes in your life when you can no longer afford to pay your bills. Your overall debts and bills exceed your ability to pay for them and eventually everything seems to be going bad. However, one way it can help you is by preventing any legal actions to be taken against you by any of your creditors. It provides financial relieve through a legal process.

Filing Bankruptcy and its Consequences

On filing bankruptcy you are actually declaring that you are broke and cannot pay back your liabilities, therefore many times your debts are dropped. You may find it appealing for some time, but later on you will realize how adversely it has affected your credit rating.

Once you file bankruptcy, you will have to bear the consequences for a number of years to come as it is there to stay on your credit report for long. Your credit scores will get worse due to the fact that they are not backed by any subjective measure of calculations, they do not take into account whether you make your payments in time or not, or the overall state of the economy.

Credit Repair – Post-bankruptcy

Moreover, after bankruptcy has been filed you must make all the possible efforts to get back on your feet as soon as possible. This requires you to take drastic steps in order to repair your credit score. Make sure that you improve your payment record by making timely payments. You should try to keep your balance low against high availability of credit. Apart from that maintaining a longer credit history also improves creditworthiness.

Credit repair is a slow process and every small step taken by you will contribute towards improvement of your credit score. Therefore it is imperative that you build up a strategy for it on the basis of your intelligence and make sure that you leave no stones unturned in order to aggressively pursue your credit repair strategy.

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Category: Blog, Remove Bankruptcies

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