Credit Score And Bankruptcy Relief

As an Orlando bankruptcy lawyer I speak with clients and potential clients every day who are considering filing for bankruptcy

. Invariably, before we even get into the amount of debt the person has and how filing bankruptcy can benefit him or her, the person tells me they have an "A++" credit score. Or, I am made aware of their "850 Beacon Score".

"That's good", I may reply. Then I say, "Tell me what it's like not to have to pay minimum payments each month on 8 different credit cards. Tell me about the money you have saved up for retirement. Tell me about the discretionary income you have each month."

Silence.

According to a recent blog post by Connecticut consumer and bankruptcy lawyer, Gene Melchionne, a person's credit score tells you two things, "how you handle the debt you already have and how will you likely handle any new debt." You see, a credit score, and the banking industry that promotes and relies on a person's credit score, are dependent on people constantly feeling they have to pay off debt and then get new debt.

Think about it, if you didn't have the need to take out any debt, would your credit score matter all that much to you? If you could get yourself off of that debt treadmill by becoming debt free you would no longer be a slave to your credit score. For clients who are still concerned about what filing for bankruptcy will do to their credit score, as their bankruptcy lawyer, I tell them about my past clients who financed the purchase of a car a few months after they were Discharged from bankruptcy, or received credit card offers in the mail the same day they received their bankruptcy Discharge!

Someone's credit score will generally boomerang a couple of years after they receive a bankruptcy Discharge, in most cases.

Many people have been a slave to some computer generated credit score number for years and have lost sight of really important financial matters like "Am I doing enough to provide for a comfortable retirement?"

In retirement, an A++ credit score won't do much to supplement your social security check each month.

by: K. Hunter Goff

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