Resolve your debts and clear your credit report - the key to improving your credit score! On The Miller Law Chronicles, we discuss how filing bankruptcy can help wipe out multiple debts at once for a clean credit report. After discharge, verify accounts show as paid so you can rebuild your score. Take action now and listen to the full episode to learn how to improve your credit!
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Transcripts
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You can settle the debt due debt negotiation, or you can file for bankruptcy. If you're going to negotiate with your debt, we're gonna talk to you about making sure you get those items off your credit report. And the same thing with filing bankruptcy, cause if you go through one of these processes and you've completed the process and at the end of the day you don't get your credit report cleaned up, you really haven't accomplished helping yourself get to that 720 credit score.
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Hi, this is Attorney Jamie Miller, and I wanted to spend a few minutes on our podcast today and talk about the high cost of having bad credit. And I see a lot of people that come in to our office and talk to me about their bad credit. That their credit scores in the high 400's or the low 500's and they're always concerned about whether or not they want to file a bankruptcy or continue on with what they're doing and try to find a way to improve their credit. Outside of filing a bankruptcy.
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But when you file for bankruptcy, your bankruptcy is going to discharge your debts and improve your credit score dramatically over a period of time. See, the first step in getting good credit is making sure that all of the negative credit information on your credit report doesn't appear there anymore.
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And essentially with the income you have, are you able to pay back? The debt that you have now, if your debt to income ratio is really high, your credit score is going to drop. And I see a lot of people that come in and they may have, you know, a lot of credit card debt, medical debt, their up to date on everything, but their credit score continues to drop.
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If you have 10 different debts or 15 different debts, Finally, the bankruptcy gives you a clean slate on that debt. And often I'll talk to people, well, should I just do debt negotiation and negotiate my creditors and not file for bankruptcy? That can be a good option, but I always tell people to keep in mind if you have 10 different elements or 10 different situations of bad credit on your credit report, if you're able to get rid of all of them fantastic.
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Because unless you get everything cleared off your credit report, the filing of the bankruptcy or doing debt negotiation isn't something that can help you. Now, the other critical part, you may settle all of your debt, but you need to make sure that at the end of the day all of that debt on your credit report reflects that it's been satisfied.
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Take notes. Of the items on the credit report that still show credit owed, we make sure that the bankruptcy discharge reflects that the debt on each line item on the credit report shows that debt is gone. And unless we take that step and clear that off that debt, even though you may have discharged it in the bankruptcy, it could still show. That still impacts your debt to income ratio.
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But immediately make sure that every debt on your credit report that was discharged in your bankruptcy properly reflects that the debt is gone. So it no longer reports or no longer is reflected in your debt to income ratio. Now, the path to new credit can be really complicated. There's many elements to it.
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Lots of great information coming weekly from The Miller Law Chronicles. I really appreciate you listening.
