How Bankruptcy Affects Your Credit Score
June 7, 2012 By Bornmann Law Group, PLLC - Bankruptcy Lawyers
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A bankruptcy will always be considered a very negative event by your FICO score. How much of an impact it will have on your score will depend on your entire credit profile prior to filing bankruptcy. Filing for bankruptcy in Arizona will have a negative effect on your credit. While there are many things to consider when considering filing for bankruptcy, you can expect it to impact your score for as long as the bankruptcy is listed on your credit report.
Filing for bankruptcy in will have a negative effect on your credit. Although filing for bankruptcy in might seem like an easy way to erase your debts and start over with your life it also involves many more things that you may not be familiar. Please know, not only could you lose your home but you will also have a bankruptcy that will stay on your credit report for an average of seven to ten years. Depending on the type of bankruptcy you file for, your credit report could drop by as much as 240 points just after filing for bankruptcy protection.
While there are many things to consider when considering filing for bankruptcy, you can expect a bankruptcy to impact your score for as long as the bankruptcy is listed on your credit report. A chapter 7 or chapter 13 bankruptcy filing will be reported on your credit file for up to ten years. However, in the ever-changing society and with the current recession the negative effects that a bankruptcy leaves on your credit report is considered less and less important.
The main issue that discourages most people from filing bankruptcy is the detrimental effect is has on their credit and on their credit score. As we have established, filing for bankruptcy can stay on your credit report for up to ten (10) years and it seriously hurts your credit score. While there are drawbacks to filing bankruptcy, it is important to consider that not filing for bankruptcy and allowing your debts to go to collections will also negatively impact your credit. At least after filing bankruptcy, your debts are erased and you have a low credit score. Letting your debts go through collection, garnishment, or repossession leaves you still burdened with the debt as well as a low credit score.
If you choose to file for bankruptcy protection, you can rebuild your credit fairly quickly after declaring bankruptcy. An experienced debt relief expert can guide you through the best ways to not only prepare for your bankruptcy but also how to re-build your credit after filing bankruptcy.
ABOUT THE AUTHOR: On behalf of the Bornmann Law Group, PLLC, Attorney Parker Evan Bornmann
Parker Evan Bornmann is the managing attorney of the Bornmann Law Group, PLLC, an Arizona bankruptcy law firm that helps people file for bankruptcy. With offices in Mesa, Tucson, Phoenix, and Glendale our bankruptcy law firm offers Free bankruptcy consultations and debt evaluations.
The Tucson bankruptcy lawyers at the Bornmann Law Group offer some of the lowest legal fees in all of Arizona. With offices throughout the state of Arizona, our Arizona bankruptcy law firm offers payment plans for every budget, night and evening appointments, and FREE initial consultations and debt evaluations.
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More information about Bornmann Law Group, PLLC - Bankruptcy Lawyers
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
While there are many things to consider when considering filing for bankruptcy, you can expect a bankruptcy to impact your score for as long as the bankruptcy is listed on your credit report. A chapter 7 or chapter 13 bankruptcy filing will be reported on your credit file for up to ten years. However, in the ever-changing society and with the current recession the negative effects that a bankruptcy leaves on your credit report is considered less and less important.
The main issue that discourages most people from filing bankruptcy is the detrimental effect is has on their credit and on their credit score. As we have established, filing for bankruptcy can stay on your credit report for up to ten (10) years and it seriously hurts your credit score. While there are drawbacks to filing bankruptcy, it is important to consider that not filing for bankruptcy and allowing your debts to go to collections will also negatively impact your credit. At least after filing bankruptcy, your debts are erased and you have a low credit score. Letting your debts go through collection, garnishment, or repossession leaves you still burdened with the debt as well as a low credit score.
If you choose to file for bankruptcy protection, you can rebuild your credit fairly quickly after declaring bankruptcy. An experienced debt relief expert can guide you through the best ways to not only prepare for your bankruptcy but also how to re-build your credit after filing bankruptcy.
ABOUT THE AUTHOR: On behalf of the Bornmann Law Group, PLLC, Attorney Parker Evan Bornmann
Parker Evan Bornmann is the managing attorney of the Bornmann Law Group, PLLC, an Arizona bankruptcy law firm that helps people file for bankruptcy. With offices in Mesa, Tucson, Phoenix, and Glendale our bankruptcy law firm offers Free bankruptcy consultations and debt evaluations.
The Tucson bankruptcy lawyers at the Bornmann Law Group offer some of the lowest legal fees in all of Arizona. With offices throughout the state of Arizona, our Arizona bankruptcy law firm offers payment plans for every budget, night and evening appointments, and FREE initial consultations and debt evaluations.
Copyright Bornmann Law Group, PLLC - Bankruptcy Lawyers - Google+
More information about Bornmann Law Group, PLLC - Bankruptcy Lawyers
View all articles published by Bornmann Law Group, PLLC - Bankruptcy Lawyers
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
