Does Bankruptcy Affect My Credit Score?
Before you file, speak with an attorney about the benefits and risks of bankruptcy
Bankruptcy is an effective way to end your debt problems and set yourself up for a better financial future. But many people are terrified at the thought that their credit will be destroyed by filing bankruptcy, leaving a black mark on their history that can never be erased. This is not the case. Your credit score will be affected but the extent and the duration of that impact will vary depending on your circumstances.
For Queens debt management help and a full explanation of how bankruptcy can affect your credit score, turn to Mark E. Cohen, Esq.. With more than 25 years of experience helping clients get a fresh start through bankruptcy, I am happy to answer your questions and set your mind at ease.
Bankruptcy on your credit report
Filing for bankruptcy does not make your debt history magically disappear. Though most or all of your debts may be discharged, setting you free from the burden of repayment, a history of late or missed payments remains on your credit report and may negatively affect your credit score.
In addition, the bankruptcy itself will stay on your record for a number of years from the date of filing:
- Chapter 7 bankruptcy for ten years
- Chapter 13 bankruptcy for seven years
Because your credit score is based on a number of factors, the effect of a bankruptcy will vary. If your score is already low because of other credit problems, filing bankruptcy may not make much difference. If you have a fairly good credit score, however, your score may drop more noticeably after filing for bankruptcy.
Will I ever be able to obtain a loan after filing for bankruptcy in Queens?
You will be able to obtain a loan after filing for bankruptcy, though the interest rate will be higher than that typically charged to borrowers with a good credit history. Depending on the state of the economy, you may also find lenders reluctant to grant a loan while a bankruptcy filing appears on your credit report. This means you may have to wait seven or possibly up to ten years before you qualify for a loan, but it is not a permanent situation.
For experienced help with Queens debt negotiation and solid guidance on reestablishing and maintaining your credit report following bankruptcy, contact me at Mark E. Cohen, Esq. today.
For individuals in Queens, debt management help is just a phone call away.
All too often, good people find themselves in financial trouble that quickly spirals out of control. For more than 25 years, I have helped people like you understand the available options, make informed decisions and navigate through the complex process of filing for bankruptcy.
Located on Queens Boulevard in Forest Hills, I offer a wide range of services to individuals and families suffering from the weight of debt. Call Mark E. Cohen, Esq. at 718-487-9979 or contact me online to schedule a free consultation.