Filing for bankruptcy could be an effective way to help a Texas resident get control over their finances. However, it can also have an impact on a person's credit score. While it is possible to repair a credit score, the only way to do so is by spending time making payments and taking other steps to overcome past mistakes.
Those who choose to work with a credit repair company may be told about something called file segregation. It involves creating a brand new identity. This strategy is purported to make it easier to rebuild credit instantly. However, the truth is that it could result in prison time. This is because taking steps such as signing up for an employer identification number (EIN) is considered to be fraud if an individual isn't planning on starting a business.