Credit Scores
Normally if an individual is considering bankruptcy as an option his or her credit score has already been damaged. Often discharging a large amount of debt will put a person in a better position to build a good credit score.
Dave Ramsey, a popular author and radio talk show host calls a credit score a debt score and questions whether or not people need good credit scores. He advocates paying cash for everything, and this may be a good plan for some people, but most Americans need a good credit score to purchase cars or homes at a reasonable interest rate.
It is true that a bankruptcy will stay on your credit report for years, but experts tell us that if you are careful not to make late payments after you file bankruptcy and you check your credit report annually, you can rebuild a good credit score within two or three years. Credit rebuilding after a bankruptcy is credit rebuilding on an absence of debt, like building on a firm foundation. Whereas credit protection that is constructed, for instance, on a mass of credit card debt, is like building upon sand – it has no depth.
Carolyn Chesnutt