If you’ve been thinking about filing for bankruptcy but haven’t taken the leap yet, now is the perfect time to act. Here’s why: filing for bankruptcy before the end of the year can make a significant difference in your financial future—specifically when it comes to your credit score.
It might sound like a small detail, but having your bankruptcy show as being filed in 2024 instead of 2025 can make a huge difference when it comes to your credit report. Why? When the bankruptcy shows as “last year” on your report, it can help improve your credit score faster.
The Impact on Your Credit Score
You might be surprised to learn that, in many cases, bankruptcy can actually increase your credit score. Here’s how: Credit scores measure your ability to repay loans in the future. When you file for bankruptcy, it wipes away the negative items on your financial record—like past due accounts and collections—while leaving the positive things, like your steady income and assets, intact. As a result, after filing, you become more likely to repay a loan, so your credit score often rises.
Still not convinced? Check out real-life examples from our clients on our Facebook page, where they’ve shared screenshots from Credit Karma showing their credit scores improving after filing.
Why Timing Matters
So, why does filing before the year ends make a difference? The key factor is how quickly you can move forward after filing. If you file now, you’ll be able to apply for a mortgage in two years if you file for Chapter 7 bankruptcy, or just one year after filing Chapter 13. By getting the ball rolling now, you’ll be in a better position to achieve your financial goals and purchase a home much sooner than if you wait.
The Real Benefits of Filing Sooner
The number one thing we hear from clients after their cases are complete is that they wish they had filed sooner. Living with debt and financial stress is exhausting, and bankruptcy offers a way to reset your financial life. You’ll have the opportunity to rebuild with a clean slate, and the weight of that stress will be lifted.
Filing before the year ends can allow you to end 2024 on a positive note, giving you the fresh start you deserve.
Get Started Today
Don’t wait any longer. We can file your bankruptcy case with no upfront costs, and you’ll have an easy, affordable payment plan of just $85 every two weeks. Reach out to us today at 612-824-4357 for your free consultation, and let us help you take the first step toward a brighter financial future.
