How Can A Bankruptcy Affect My Credit?
Thinking about filing bankruptcy? Well you are not alone. Last year in 2016 there were over 800,00 bankruptcies filed in federal court. There are many different reasons consumers file bankruptcy. Spiraling debt, divorce or just a fresh start with their credit file.
What is a Bankruptcy?
By definition a Bankruptcy is a legal proceeding involving a person or business that is unable to repay outstanding debts. The process begins with a petition filed by the debtor or on behalf of the creditors. All of the debtors income and assets are assessed and evaluated. The courts then determine what portion of the debt will be paid. There are two types of bankruptcies you may file, Chapter 7 and Chapter 10 Click here for more info.
How Creditors View You After a Bankruptcy is Filed.
A bankruptcy can remain on your credit file for up to 10 years. Creditors, employers and rental properties may deny if an applicant has a bankruptcy. As time passes the bankruptcy is less of a factor when making a decision. By time meaning minimum 3 years from the date the bankruptcy was discharged. No worries with patience and the right credit repair service, you will be well on your way to an acceptable credit rating so that you may start rebuild your credit.
So before you decide to file bankruptcy, speak with a bankruptcy specialist. Ask questions and decide if it is the best decision in your case. There are many options such as debt consolidation companies who also may be able to assist. In the end do what's best for you and your financial situation.