Effect of Bankruptcy On Your Credit Score

Filing for bankruptcy will be reported on a person’s credit report and will have an impact on their credit rating. However, it may not be nearly as bad as they think and could even improve their score. Once someone’s bankruptcy is processed and reported on their credit score, it will unfortunately be listed for 7 years if it was a Chapter 13 bankruptcy and up to 10 years if it was a Chapter 7 or 11. This will negatively impact their score if prior to the bankruptcy they had a stellar credit score to begin with. However, the fact is many people who file bankruptcy do so because they are unable to make on time payments to their creditors in the first place and already have taken many negative hits on their credit report. As such, their credit score has already been negatively affected and filing for bankruptcy will not actually lower it significantly . In fact, depending on the amount of bad debt the person has, filing for bankruptcy could even make their credit score better as bankruptcy wipes clean all of the person’s dischargeable debts, leaving a better credit score despite having a bankruptcy listed on their credit report. If you are considering filing for bankruptcy you will be addressing many issues concerning your credit score and should consult with an experienced bankruptcy attorney immediately in order to protect your rights. For more information regarding your credit score, bankruptcy, foreclosure or consumer debt matters in New Jersey visit TheNJBankruptcyAttorney.com. This blog is for information purposes only and in no way is intended to replace the advice of an attorney regarding your specific matter. We are a Debt Relief Agency. We help people file for bankruptcy relief.