Bankruptcy is a great debt relief option for many people who want to restructure their debt or get rid of it completely. However, many people are often worried about how bankruptcy will affect their life once their debt is paid, especially their credit score. Our Southern California bankruptcy lawyers explain how bankruptcy actually affects your credit score.
Bankruptcy & Your Credit Score
After you file for bankruptcy, it will be on your credit report. The type of bankruptcy you file for (either Chapter 7 or Chapter 13 bankruptcy) will affect how bankruptcy will show up on your credit report. For example, Chapter 7 bankruptcy will stay on your report for up to seven years. A completed Chapter 13 bankruptcy will remain on your credit report for up to ten years. However, as the items on your report associated with bankruptcy get older, they will have less effect on your credit score.
Myths About Your Credit Score After Bankruptcy
Many bankruptcy filers get worried that their credit score will be ruined because bankruptcy is listed on their report. However, due to their large amount of debt, most bankruptcy filers already have a low credit score. In reality, having a bankruptcy on your credit report won’t hurt your ability to get a new loan or open a credit card in the future. In fact, it will help you rebuild your credit score throughout the following years.
Southern California Bankruptcy Lawyers
If you have questions about how bankruptcy will affect your credit score, or you need help achieving financial relief, our team at Wadhwani & Shanfeld can help you. Our Los Angeles bankruptcy lawyers have helped over 20,000 people throughout Southern California obtain debt relief. We have the knowledge, skills, and experience needed to help you obtain your desired results.
Contact our Los Angeles bankruptcy attorneys today at (800) 996-9932 to schedule a case review!