Bankruptcy and your credit score:
Will bankruptcy hurt my credit is a question people have. The answer to this question is that it really depends on your particular circumstances. In reality many of my clients are facing judgements for unpaid credit card bills, car repossessions, and foreclosures. In those situations the answer is that in an odd way bankruptcy may help.
This is because once you file a chapter seven you are given a fresh start by eliminating most if not all of your unsecured debt. This means that your debt to income ratio, a key to determining your credit score, will be greatly reduced. A low debt to income ratio helps increase your credit score. Also, since you can only file an Oklahoma chapter 7 bankruptcy every eight years, in the event you find yourself unable to pay your bills before the expiration of this period, filing bankruptcy will not be an option for you thereby allowing the creditor to garnish your wages without fear of another bankruptcy discharge.
If in your bankruptcy in Oklahoma you decide to keep your car or your home through a reaffirmation agreement and continue to pay the debt its like coming out of your chapter 7 with a new loan. This allows you to continue making those payments and doing so in a timely fashion, together with your lower debt to income ratio, is great chance to show creditors post bankruptcy filing that you are once again credit worthy.
You can keep your house in an Oklahoma bankruptcy, You can keep your car in an Oklahoma bankruptcy, and you can in many situations improve your credit in an Oklahoma Bankruptcy. For Bankruptcy information in Oklahoma and a free consultation with a chapter 7 bankruptcy lawyer call today. 918-637-1546