The Most Relatable Fears About Filing Bankruptcy for Residents In Franklin County, Ohio

Written By: Katy Brewer & Brian Wood

Bankruptcy is an option for those who can’t catch up on their finances and can no longer afford to pay off any debt owed to various creditors. When under financial stress and pressure, many residents of Franklin County, Ohio, and beyond hesitate to consider bankruptcy a suitable option. In fact, many residents worry it will significantly damage their credit score, making life that much harder for them. However, while filing for bankruptcy can impact an individual’s credit score, there is so much more to it than that. Those dealing with a debt crisis need to gather more information on bankruptcy before making a well-informed decision on what to do with their finances.

Unfortunately, those who’ve been in debt for a while have likely already experienced a significant drop in their credit score. It helps to remember that bankruptcy can be a feasible option for many because it often leads to a discharge of the debt, which may eventually help an individual boost their credit score over time. It genuinely provides the potential for a fresh financial start that will bring significant relief along with it.

Credit scores can range from 300 to 850, with 850 being the absolute best score a person can obtain. However, even a score within the low 600s is considered poor. Most people who file for bankruptcy have scores at or below 550, but each case is different and will depend on various factors, including the amount of debt an individual has and which creditors they owe. Even if your score is higher, you may still be eligible to file for bankruptcy.

Filing bankruptcy doesn’t automatically mean your scores will increase in a few days or weeks, but it allows you to take the first steps toward financial freedom. You can have a fresh start where you no longer have to be harassed by creditors expecting their payments. Most people who file for bankruptcy will then adopt responsible practices when handling credit cards and loans to ensure their credit scores improve. If you take the right approach, you can achieve the same goals.

It’s normal to have concerns over the implications of filing for bankruptcy. The fear of the unknown often prevents people from making a wise financial decision that relieves stress and can even help them get back on their feet. Keep in mind that any concerns you might have can be quickly addressed by a legal professional with extensive experience in bankruptcy cases. Rather than stress over what bankruptcy could mean for you and your credit score, consider reaching out to an attorney who would be willing to answer any questions you might have for them. As a resident of Ohio, it won’t be difficult to find an attorney who will go over the bankruptcy process to ensure you understand what it entails.