Will filing bankruptcy hurt my credit score?
Filing bankruptcy can leave an impact on a person’s credit, but the effect may not actually be that severe. Many people who file bankruptcy already have lousy credit, and filing bankruptcy allows them to wipe the slate clean rather than continuing to have dozens of accounts in collection.
You should also know that most types of bankruptcy will stay on your credit report for a period of at least ten years. (In some cases, the time period can be reduced.) During that time, it may negatively affect your credit.
However, bankruptcy can also provide you with a chance to “start fresh” and rebuild your credit.
Bankruptcy can be an effective way to regain control and tackle mounting debt. Many people find that their credit scores improve not too long after they file bankruptcy.
Keep in mind that how your credit will be affected will depend on a number of factors, such as where your credit level is at today and which type of bankruptcy you file. There are also a number of things you can do to improve your credit once you’ve filed for bankruptcy, and those things along with the bankruptcy filing will allow your credit score to improve, even during the period in which the bankruptcy still reflects on your credit report.