How Will Bankruptcy Affect My Credit?

Declaring bankruptcy is a serious and quite complicated step to take in life. Bankruptcy has far-reaching consequences, not the least of which is how it affects your credit score. For those considering filing for bankruptcy, understanding the implications this can have on their financial future is essential.

Declaring bankruptcy will remain on your credit report for up to 10 years and can significantly reduce your credit score. The effect will depend on what type of bankruptcy you file: Chapter 7 or Chapter 13. Both types involve liquidation of assets and repayment plans; however, Chapter 7 requires all eligible debt be discharged while with Chapter 13 some debts may have to be paid back over time as part of a court-approved plan. Regardless of which chapter you declare, creditors view bankruptcy negatively and it can lead to difficulty in getting approved for new loans or lines of credit in the short term.

The Law Offices of the 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 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