How To Repair Your Credit in Michigan?
If you're struggling to pay your bills, bankruptcy can be the best way to repair your credit. Filing for bankruptcy in Michigan allows you to eliminate the debts that are bringing down your score and get a brand new start.
Call or text DebtStoppers today at 313-880-3970 to request a free debt repair consultation with one of our skilled Michigan lawyers. We'll review your financial situation and explain how bankruptcy laws can turn bad credit into good.
The Michigan Laws on Rebuilding Your Credit
Bankruptcy can help you rebuild by eliminating your debt and offering a second chance to get the life you deserve. In Michigan, there are two types of consumer bankruptcies: Chapter 7 or Chapter 13.
Chapter 7 provides you with a financial do-over by eliminating most of your debt. Even though a court-appointed trustee is legally allowed to sell off some of your assets to pay back creditors, this rarely happens.
Your other choice is Chapter 13, which reduces and restructures your debts instead of wiping them out. You'll pay a single affordable installment each month for 3 to 5 years, enabling you to repay your debt over time.
What Is a Bad Credit Score?
On the FICO scale of 300 to 850, a score below 580 is considered "poor," and a score between 580 and 669 is deemed "fair." You probably already know that low scores can keep people from getting loans or opening new accounts. You might have already had applications denied because of your low score.
Sadly, there is no magic wand that you can wave to improve scores. "Credit repair" services in Michigan that claim they can make the negative marks on your report disappear are not magicians — they are con artists and should be avoided at all costs. Any action one of these businesses can take to get derogatory information off your report, you can do yourself for free.
Repair Your Credit After Bankruptcy With DebtStoppers
Filing for bankruptcy in Michigan lets you eliminate the debts that are bringing your score down. Even though bankruptcies stay on credit reports for ten years, the positive impact on filers' scores almost always exceeds any damages caused by filing. In fact, many people improve their scores with bankruptcy.
Because every creditor sets its own criteria for approving applications, you can still get financing after filing. Many creditors would actually prefer to loan funds to someone who has eliminated their debts than a person still buried in them. For this reason, you can usually qualify for a car loan or credit card soon after filing.
A low score can also keep you from securing a mortgage. Once you get your do-over, you can qualify for an FHA mortgage after just a year if you file Chapter 13 or 2 years if you go with Chapter 7.
An experienced Michigan debt repair expert can evaluate your circumstances and recommend the most effective way for you to repair your finances. Call or text DebtStoppers today at 313-880-3970 to schedule a free financial review with one of our qualified Michigan attorneys. We've helped thousands of families just like yours get their second chance at the good life.
Don't stay buried in debt another minute! Call or text us today at 313-880-3970 to get your custom credit repair plan.