What will be your credit score when you file bankruptcy?
It honestly depends on where your credit score is at when you file. It also depends on which bankruptcy case you file (Chapter 7 or Chapter 13). Sometimes we have to face the unpleasant reality that we have no way to pay off our debts. The first thing most of us think to do when we're in this situation is file for bankruptcy. But what happens when you start filing for bankruptcy? First, let's look at what happens when you start filing for bankruptcy.
When you file for bankruptcy, your credit isn't instantly destroyed. In fact, there's really no difference at all in the way creditors or lenders treat your account before and after you file for bankruptcy. The only thing that changes is how the courts see you: your ability to pay on certain debts may change, so some creditors might not be able to get their money from you the same way they would if you weren't filing for bankruptcy, but they'll still try. (In fact, one of the reasons it can take a long time to go through bankruptcy proceedings is because creditors are fighting to be able to collect.) I’ve personally seen scores go up after filing because it shows the credit bureaus that you are taking responsibility for your situation in life. If you’ve had high scores (in the 700+ range, your score will usually fall after you file). The longer in the past the bankruptcy filing date is on your credit, the less effect it has on your score until it eventually falls off your report.
If you need help with bankruptcy or credit repair, call this law firm for a free consultation and they’ll help you.
Ascent Law LLC
8833 South Redwood Road Suite C
West Jordan UT 84088
801 676 5506
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