Is Credit Score Damage Overemphasized when Considering Bankruptcy?
For most Americans, access to credit is essential. Whether in the form of home loans, student loans, home equity loans, credit card debt, or auto loans, credit is important to keep life humming along. Sometimes personal indebtedness is seasonal: the holidays and summer travel brings unique, one-time costs. Other times, indebtedness is a reflection of seasons of life: job loss, illness, or a family member’s death.
For individuals and families facing bankruptcy, access to credit can feel just as essential. In many cases, access to credit has been even more important to distressed debtors than the average American. Often for these Americans the credit card or home equity loan has been the difference between making ends meet and going hungry.
Here’s the surprise: despite how it feels, access to credit may actually be less important to debtors considering bankruptcy than to most Americans. For many on-the-brink debtors, months or years of partial payments, late payments, non-payment may have eroded their access to reasonable or prudent forms of credit.
If you’re considering declaring bankruptcy, you may be worried about what bankruptcy will do to your access to credit. But if you’re like a lot of debtors, you’ve already lost the good credit score that’s essential to your access to credit. So, if your credit score concerns are all that’s holding you back, it may not be the persuasive worry you think it is.
Do you have questions and concerns about whether bankruptcy might be right for you? Talk to the professionals and dedicated attorneys at the Dallas law firm of Fears Nachawati to find the answers you need. We’re ready to help you.