Bankruptcy

What should i know about filing bankruptcy?

Filing for bankruptcy can be a difficult decision to make, but it can be the right one if you are facing insurmountable debt. It’s important to understand the different types of bankruptcy and the consequences that each can have. Chapter 7 bankruptcy is the most common form and it will discharge most of your debts, but it will also remain on your credit report for up to 10 years. Chapter 13 bankruptcy requires a repayment plan over 3-5 years, but it will not stay on your credit report as long as Chapter 7. Before filing bankruptcy it is important to consult with a lawyer or credit counselor to understand the full impact it may have on your financial situation.

What will filing bankruptcy do to my credit score?

Filing for bankruptcy can have a significant impact on your credit score. It will remain on your credit report for up to 10 years and can severely lower your credit score. It’s important to understand that bankruptcy is a serious decision that should be taken only after considering all available options. In the short term, filing for bankruptcy can have a negative impact on your credit score but over time, if you make responsible financial decisions, you can rebuild your credit score.