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One of the main reasons that people don't want to file for bankruptcy in Wisconsin is that they're afraid of what the filing is going to do to their credit. After all, it's going to stay on their record for a decade, and it can make it much harder to get credit cards and other lines of credit going forward. They still want a high credit score, and they think that bankruptcy will make it impossible.
On one hand, this is true. Bankruptcy does hurt your credit score. However, it may actually help you to file because missing payments is going to hurt your score even more in the long run.
Remember, those who are filing for bankruptcy are often out of options and simply can't pay all of their bills. They try to juggle everything, missing a mortgage payment one month, a credit card payment the next, or a car payment the next month.
If you do this, with each missed payment, your credit score drops even lower. Lenders start to see these missed payments and realize you're a high risk. Yes, it may be hard to get a credit card after filing for bankruptcy, but you can be sure it will be hard to get one when the lender can see that you already can't afford what you owe.
In a case like that, the fresh start could be the best option. You eliminate debt so that you don't owe nearly as much, and you can then get cards and other lines of credit specifically designed for those who have declared bankruptcy. Lenders may know you've had trouble in the past, but they also know you don't have overwhelming bills any longer.
If you'd like to file for bankruptcy, make sure you know if it's right for you and what legal steps you need to take to get the process started.
Source: The Huffington Post, "The Fresh Start of a Bankruptcy May Restore Credit Faster," Richard Gaudreau, accessed July 15, 2016