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Posts Tagged ‘bankruptcy filing’

How Bankruptcy Actually Improves Your Credit

access_time Posted on: June 3rd, 2019

Article by: Haley Rohrbaugh, Esquire A common misconception about Consumer Bankruptcy is that it devastates your credit. When I meet with potential clients for an initial consultation, most are surprised to find that a Bankruptcy filing will actually improve their credit score. Credit limit usage. Using more than 50% of allowed credit limits will negatively affect a consumer’s credit score. (For example, a credit card with a $1,000.00 credit limit holding a balance due of $500+ will cause credit scores to decrease); andDebt-to-income ratio. Having high levels of debt compared to household income will also decrease credit scores. However, the… read more »