How Bankruptcy Affects Credit Score

Bankruptcy is a serious financial event that can have long-term effects on your credit score. Your credit score gives lenders an idea of how trustworthy you are when it comes to paying your debts, and if you’ve filed for bankruptcy, then this will undoubtedly affect your credit score in the short-term. Knowing exactly how bankruptcy affects your credit score is important for anyone considering filing for it.

When someone files for bankruptcy, their current debt is eliminated or restructured to make it easier to pay off. This process will immediately lower their credit score due to its negative impact from being on record with the court system. Depending on which type of bankruptcy you file (Chapter 7 or Chapter 13), a person’s credit score can drop anywhere from 85-160 points in just one day.

The Law Offices of Omar Zambrano has helped thousands of people and businesses in the past to get out of debt and start over.

Our goal is to help you can find a fresh start FAST!

Schedule your free consultation today! By Calling 626-338-5505 or visiting us at 12738 Ramona Blvd Baldwin Park CA 91706