Many Ohio residents may feel as if bankruptcy may not be right for them because they have heard that filing will negatively affect credit scores. While it is true that bankruptcy will have an effect on such scores, that reason alone may not be worth disregarding this debt relief option. Interested individuals may wish to gain more information on what might happen to credit scores when filing for bankruptcy.
In many cases, individuals with considerable debt issues have likely struggled with the problems for an extended period of time. As a result, their credit scores have likely already taken considerable hits and lowered over time. When filing for bankruptcy, debt is often discharged through the process, and as a result, credit scores may actually rise rather than fall.
A credit score in the lower 600 region of the 850 point scale is most often considered poor. Reports indicated that many individuals who file for bankruptcy have a starting credit score below 550. After many parties finish their bankruptcy process, those scores increase to over 600. Of course, bankruptcy does not skyrocket a score into a high level, but it may begin the process for individuals to continue increasing their scores through responsible credit practices.
Worrying about how bankruptcy may affect a person financially is understandable. However, much of this worry may come from not having all the facts about how beneficial bankruptcy could be. If Ohio residents are considering this option, they may wish to find out more about the process and converse with an experienced attorney who may be able to address any questions and concerns.
Source: nerdwallet.com, "When Bankruptcy Is the Best Option", Liz Weston, May 23, 2016