What happens to my credit score?

Your credit score is an important number, and Arizona residents are worried about the damage caused to their credit score if they file for bankruptcy. But once you realize the need to file for bankruptcy, it is almost always true that your credit score will actually improve by filing bankruptcy. If you have missed payments on a mortgage, car loan, or credit card prior to seeking legal advice for AZ bankruptcy, then your credit score has already suffered.

What many people do not realize is that filing for bankruptcy might be the best thing you can do for your credit score in the long term. And filing for bankruptcy will definitely help relieve the burden of heavy debt in the short term. If your debt burden is overwhelming, then undue concern about your credit score should not be the highest priority. Getting your financial life back on track is the highest goal.

While a bankruptcy filing is a devastating blow to your credit rating, a discharged bankruptcy basically resets your credit score. And you can help to rebuild a better credit score quickly with positive credit activity on your credit report, such as regular mortgage payments, auto payments, and store credit card payments. Setting and keeping new financial goals and practices will ensure that your credit score continues to grow. With careful, measured progress you will begin to see positive changes to your credit score within as little as one year.

Many Arizona bankruptcy law firms offer free initial consultations, as we do here at Radix LawC, with offices in Scottsdale, Arizona. A knowledgeable bankruptcy lawyer can help you determine which bankruptcy chapter best fits your individual circumstances. Talking with a bankruptcy attorney about your personal situation is the best way to determine what affect a bankruptcy filing will have on your credit score.