Can your credit score increase after declaring bankruptcy?

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Surprisingly, the answer is yes. For some people credit scores actually increases after a bankruptcy.

Consumers who are on the verge of bankruptcy already have poor credit with late payments, high balances, and charged off accounts or collections accounts. When an individual declares bankruptcy, many of the collections and high balances are wiped clean leading to a potential increase in credit scores. But remember these scores are already significantly depressed so don’t look at bankruptcy as a way of increasing your score.

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How do I know when its time to file bankruptcy? With a credit score of 496 and no realistic options for paying off my debt, is it better to file now?"

NinaDB at 7:33 pm Mar 7

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Try to contact your creditors to see if you can get a settlement for less than the actual amount owed. If so, have them document the settlement in writing and then pay them off. Otherwise, yes, you should probably file bankruptcy, though I recommend you seek expert advice before doing anything."

GamingG at 6:27 pm Nov 21

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