We’ve all heard it before. Bankruptcy destroys your credit. Well that’s true in some cases, but you’d be surprised to hear that in most cases, it is actually the opposite. In most cases where our Los Angeles bankruptcy lawyers file bankruptcy, bankruptcy improves credit scores. What??? That’s right and its quite simple if you take the time to understand why.
Although some people (very few) do have great credit right before they file for bankruptcy, the vast majority of people do not. Most people already have bad credit from years of accumulated debt. Most of the people that are ready to file bankruptcy have not paid their bills in months if not years. A quick history of their credit report shows big balances that are in collections and proceeding to lawsuits.
It is because most people are in this situation that filing for bankruptcy improves their credit score. Bankruptcy literally wipes out tens of thousands of dollars of bad debt. And when that debt is wiped out, their credit scores go up. Sure bankruptcy is still a negative but it can be the vehicle through which you start to rebuild your credit. If you leave bad debt on your credit report, it will be very difficult for you to rebuild your credit score. Bankruptcy can help you start over from zero instead of from a negative standpoint.
That is why we refer to bankruptcy as a fresh start. It really can give you a new start to your financial life. If you are in the communities of Burbank, Glendale, Pasadena, San Fernando Valley, Santa Clarita Valley or anywhere in the Los Angeles area give our bankruptcy lawyers in Burbank a call. Our Los Angeles bankruptcy attorneys would be happy to sit down with you and explain the benefits of bankruptcy through a free consultation.