Will Chapter 7 Bankruptcy Lower My Credit Score?
If you're considering filing for Chapter 7 bankruptcy, you may be wondering if it will lower your credit score. The answer is yes, but the amount of damage to your credit score depends on several factors.
When you file for Chapter 7 bankruptcy, an automatic stay is placed on any pending collection activity and all creditors must stop collection attempts until after the discharge. This automatically lowers your credit score by a few points because it appears as though you are unable to pay back any outstanding debts. Once the bankruptcy is discharged, many of the accounts associated with those debts will be marked as "discharged in bankruptcy" or "closed". This further reduces your credit score by up to 150 points depending on how much debt was involved and your current payment history.
The Law Offices of Omar Zambrano has already 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