It goes without saying that filing for bankruptcy is going to have an extremely negative impact on your credit score. In the Chapter 7 sort of bankruptcy, the court will arrange for assets that you hold to be sold in order to meet your obligations. While, in theory, this is supposed to write off most of your debt, and provide you with a new start in life, in reality, while it does do that, it also leaves a derogatory mark on your credit score that will remain for the next decade.
If you opt for the Chapter 13 sort of bankruptcy, the court designs a repayment strategy that you will have to keep to, which will enable you to repay your debt over between three to five years. Generally speaking, at the end of that period, any debt that remains is wiped clean. However, even a Chapter 13 filing will affect your credit score for the next seven years.
However, the effect of bankruptcy filing is not entirely negative as it does provide you with certain advantages. In essence, if you don’t file for bankruptcy and if you’re in a downward spiral of debts that are impossible to repay, you have no chance at all of recovering your credit rating. However, if you do file for bankruptcy, this allows you the considerable advantage of a fresh start. So, while it will leave a mark on your credit rating that can last seven to ten years, it will also allow you the advantage of a fresh start.
If you need help if filing bankruptcy, our team will take care of all the formalities. Don’t hesitate to reach out to us, we’ll be glad to help.
Read the full version of the original article here: https://consumerattorneys.com/article/i-filed-for-bankruptcy-how-will-this-impact-my-credit-score
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