Chapter 7 bankruptcy will remain on your credit report for ten years although bankruptcy filing takes only three to six months. Financial hardship from unforeseen circumstances is the leading reason people give for declaring bankruptcy. Chapter 7 bankruptcy will have a negative impact on your credit and may lower your credit score for years to come. Read on to learn more.
In Chapter 7 bankruptcy – those who file will no longer have to pay debt that is unsecured such as medical expenses, credit card of personal loans but settling secured loans will require the sale of their assets.
Credit Score Impact
The impact the bankruptcy has on your credit score will lesson as the years go by. So, expect a large drop at the beginning but for it to lessen over time. If you miss a credit card payment when you have a high score can take away more points than having a lower score – the same applies with bankruptcy. It also similarly applies if there is only a small number of accounts on your bankruptcy filing, the impact will be less on your credit score.
Some online sources suggest a score of around 780 will have between 200 and 240 points taken off their credit score but someone with a score of 680 will only lose between 130 and 150 points. Clearly it must be considered only when it is the final option on the table.
Speak With Our Bankruptcy Lawyers In Phoenix & Scottsdale
Canterbury Law Group should be your first choice for any bankruptcy evaluation. Our experienced professionals will work with you to obtain the best possible outcome. You can on the firm to represent you well so you can move on with your life. Call today for an initial consultation. We can assist with all types of bankruptcies including Business Bankruptcy, Chapter 7 Bankruptcy, Creditor Representation, Chapter 5 Claims, Chapter 13 Bankruptcy, Business Restructuring, Chapter 11 Bankruptcy, and more.
*This information is not intended to be legal advice. Please contact Canterbury Law Group today to learn more about your personal legal needs.