Even if you are living in fear of harassing phone calls from debt collectors and know that your bills are out of control, you may still feel reluctant to take life-changing action. It is not uncommon for people in Connecticut to avoid bankruptcy even when it is one of the most appropriate options for dealing with their debt. If you are worried about how bankruptcy will affect your future, you need to understand that you will still have plenty of financial options.
Are you worried that filing for bankruptcy will wreck your credit score? Chances are that your credit score is already suffering if you are behind on payments and dealing with debt collection efforts. Conversely, filing for bankruptcy can actually help you begin to rebuild your credit score. Within a short period of time following your bankruptcy filing, you may be qualified to get a low-balance credit card. If you pay off the balance every month you will be able to build credit and even increase your credit limit on that particular card.
So what is it about staying current on a low-level credit card improves your credit score? Even though you may only be paying off a relatively small balance each month, you are establishing a pattern of dependability. You can further boost that pattern of dependability by paying all of your bills on time, keeping current credit card accounts open and maintaining a low debt-to-credit ratio. Keeping open your credit cards that you have already paid off is very helpful for maintaining a lower debt-to-credit ratio.
There is life after bankruptcy, and a good life at that. You can free yourself from the stress of past-due notices, harassing debt collectors and the emotional trauma of dealing with all of this by filing for either Chapter 7 or Chapter 13 bankruptcy. If you are not sure which form of bankruptcy you qualify for, want to know more about what life looks like after bankruptcy or need help filing for bankruptcy in Connecticut, be sure to visit our website.