If you are filing for bankruptcy, you most likely have a lot of questions. One of the most popular questions is: how bankruptcy will affect my credit? Many people worry about their credit scores when it comes to filing for bankruptcy. Read on to learn more about the ways in which bankruptcy will affect your credit score and how you can rebuild your credit in the long run.
Will Bankruptcy Lower My Credit Score?
Yes. Bankruptcy will lower your credit score. But, the amount by which it lowers will depend on your credit score before filing for bankruptcy. If you already had a low credit score, filing for bankruptcy will most likely not cause a major change. On the other hand, if you had a high credit score, filing for bankruptcy may cause a significant change.
How Long Does Bankruptcy Stay on My Credit Report?
If you file for either Chapter 7 or Chapter 13 bankruptcy, this will appear on your credit report for up to ten years.
Can Bankruptcy Improve My Credit Score?
Immediately after filing for bankruptcy, you will likely see a dip in your credit score. But, bankruptcy can help your credit in the long run. When you reduce your debt load and get your finances under control, you can start making loan and credit payments on time.
How Can I Improve my Credit Score After Bankruptcy?
Bankruptcy remains on your credit report for up to ten years, but you can start rebuilding your credit immediately. Your credit score is determined by multiple different factors. Some of these factors include your payment history, your outstanding debt, the length of your credit history, and how much new credit you have applied for. In order to improve your credit after filing for bankruptcy, you will have to make sure to make all of your payments on time and keep your debt load low. When it comes to getting a credit card, be sure to make small changes and pay your bill in full every month. Taking the above steps should help you to rebuild your credit after filing for bankruptcy.
If you have any questions or concerns regarding bankruptcy and how filing for bankruptcy might affect your credit, contact our firm today. We understand that filing for bankruptcy can feel overwhelming, but we are here to walk you through the process, step by step, and help make sure you get back on your feet. Reach out to our firm to speak with a skilled and dedicated bankruptcy attorney.
CONTACT A BANKRUPTCY LAWYER TO DISCUSS YOUR DEBT OR COLLECTION ISSUE
Michael D. Pinsky, P.C. represents clients in bankruptcy actions and related matters. Please call 845-394-2616 or contact the firm online to schedule a consultation.