How Bankruptcy Affects Credit Score
Bankruptcy is a major financial decision that can have drastic consequences on one's credit score. Having a bankruptcy filing on one’s credit report can lower the score drastically, making it harder to qualify for loans and other forms of financing. It is important to understand how bankruptcy affects credit scores so that borrowers can make an educated decision when faced with this tough dilemma.
The most serious form of bankruptcy is Chapter 7, which results in all debts being discharged from the borrower’s name, meaning they are completely relieved from any and all debt obligations. A Chapter 13 bankruptcy requires the individual to pay back some or all of their debts over a set period of time, usually three to five years. In either case, filing for bankruptcy will have an immediate effect on the debtor’s credit score as soon as it appears on their credit report.
The Law Offices of Omar Zambrano has helped thousands of people and them businesses in the past to get out of debt and start over.
Our goal is to help you 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