Tuesday, 06 April 2010 04:53

Effect of Filling for Bankruptcy to Your Credit

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Many of the people who call to an experienced Washington bankruptcy attorney to learn more about how the bankruptcy laws can protect them are also extremely concerned about their credit rating. This can be a complicated issue, and it is one that law offices invite potential clients to discuss candidly with one of their Washington bankruptcy lawyers.

A lot of peoples have spent many years, if not decades, building up their credit scores. In difficult economic times, however, it is very tough to maintain a good credit score once you start consistently falling behind 30 days or more on various accounts. Some of people struggle for a long time to try and stay as current as possible. In talking with them in detail, however, it is apparent that they are merely treading water.

Their creditors harass and annoy them for anything they get. But it is never enough. More importantly, even if your creditor claims that they are willing to work with you, they are also probably simultaneously destroying your credit score by reporting multiple late payments. It is a vicious cycle that Washington bankruptcy attorneys have seen time and time again.

Again, this is complicated issue that is also very fact specific. In most cases, and despite what the credit card companies would have you believe, filing for bankruptcy actually improves your credit because the balances on your outstanding debts are discharged (wiped out) and your debt-to-income ratios drop.

Most people report improved credit scores within 6 months after filing for bankruptcy because an individual's debt-to-income ratio is such a critical factor in determining one's credit score. An individual's score will also improve over time because he or she is now able to pay her bills again and use credit responsibly. If you have questions about how credit scores affect bankruptcy and are contemplating filing a Washington bankruptcy, you need to call and speak with one of the experienced Washington bankruptcy attorney.

Choosing the right tacoma bankruptcy attorney may be one of the most important decisions that you will ever make. We are your experts in all chapter7, 13 bankruptcy and tacoma home foreclosure matters.

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