Filing for bankruptcy isn’t an easy choice for anyone. It has serious long-term consequences that affect your credit for years after you go through this process. But thankfully, it’s not forever. Learn more about what happens after going bankrupt and how it can actually help you rebuild your credit over time.
Is Your Credit Score Permanently Destroyed After A Bankruptcy?
No, your credit score isn’t completely ruined after a bankruptcy. If you’re filing a Chapter 7 bankruptcy, it stays on your credit report for 10 years. On the other hand, Chapter 13 bankruptcies stay on your record for 7 years. Your credit score also drops significantly and often puts you in the “poor” range.
With the low score, you’ll have a tough time accessing most credit for at least a few years. However, it doesn’t mean you can’t borrow at all during this time. You’ll just have to wait a while before you can apply for larger loans or receive better interest rates.
Why Bankruptcy Can Help You Rebuild Credit
Bankruptcy’s a valuable tool that helps you bring your financial situation to manageable levels. While it’s not without its issues, it eliminates overwhelming debt and prevents missing payments from piling up. With a clean slate, you can focus on rebuilding your credit and avoiding the same situation from happening again.
Thinking About Filing For Bankruptcy?
If you’re considering filing for bankruptcy, don’t do this process alone. Our White Plains bankruptcy lawyers make this process as easy and painless as possible. Please contact us at (914) 600-5502 to schedule a free consultation and learn more about how we can help.
