Your Credit Score Could Improve After You File for Bankruptcy in Arizona

If you file for bankruptcy in Arizona, you can expect your credit score to be lowered. But the extent of the damage might be mitigated by other factors. And many AZ residents find that their score has actually improved within a reasonable period after filing for bankruptcy.

Credit Score Damage Before You File for Bankruptcy in Arizona

It is possible that your credit score has already been damaged. If you are considering filing for bankruptcy, then you may have already missed mortgage payments, car payments, credit card payments, or payments on other bills. If that is true, then your credit score has already suffered. While filing for bankruptcy will further lower your credit score, this factor must be weighed against the benefits of a bankruptcy discharge. You will want to speak with an experienced bankruptcy attorney as soon as possible.

If you are considering bankruptcy and have not yet missed payments, you should seek legal advice for AZ bankruptcy. A bankruptcy lawyer can help you determine the best course of action for your individual circumstances.

Long Term Benefits When You File for Bankruptcy in Arizona

Filing for bankruptcy might be the best thing you can do for your credit score in the long term. A discharged bankruptcy – whether you file Chapter 7, Chapter 11 or Chapter 13 – will allow you to rebuild your credit. You can then add positive credit activity, such as mortgage payments, car payments, and credit card payments all made on time. This positive credit activity will help rebuild your credit score more quickly than you might think.

If you do not file for bankruptcy, it might take years or decades for you to fully pay off the outstanding debts. Your credit score will most likely remain low throughout all of that time.

An experienced bankruptcy law firm can help you see the positive and negative affects a bankruptcy filing will have on your credit scores. An attorney can also help you see both the long term and short term benefits that will result when you decide to file for bankruptcy in Arizona. Contact the bankruptcy attorneys at Radix Law, in Phoenix and Scottsdale, AZ.

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