You may be wondering if filing for bankruptcy will prevent you from buying a home in the future. Would it surprise you to know that filing for bankruptcy can increase your credit score? It’s true. Most people find themselves in a better position to make large purchases like a house after their bankruptcy.
How Does It Work?
Credit bureaus look at your debt to income ratio when deciding your level or risk. So, if you get rid of your unsecured debt through bankruptcy, your ratio will improve. When the ratio improves, your credit score can also increase as a result.
Remember, this is not something that will happen overnight. But, your bankruptcy will not destroy your credit forever or prevent you from getting a loan to buy a home after your discharge. Bankruptcy is merely a tool to help you turn your financial life around.
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Call our office today for a free consultation to learn more about the options that will work best for your situation.