If you are in financial distress and considering filing for bankruptcy, you are no doubt wondering what bankruptcy will do to your credit score. Will it permanently damage your credit score? How long will the bankruptcy stay on your credit report? Can you ever be free from the black mark of bankruptcy? If you are wondering how bankruptcy will affect you, there’s good news and bad news. Let’s start with the bad news first.
Bad News
Filing bankruptcy is not something you should take lightly. Bankruptcy will negatively affect your credit score. However, one who needs to file for bankruptcy relief may already have bad credit. Bankruptcy will not make a credit score worse, in such a case, than it already is. Bankruptcy can stay on your credit report anywhere from one to ten years. That mark may influence the decisions creditors make about you as long as the bankruptcy shows up on your credit report. If you are considering filing for bankruptcy, your Minnesota bankruptcy attorney will tell you how bankruptcy will affect your credit score.
Good News
Though it’s true that bankruptcy can hurt your credit score, it isn’t something you cannot recover from. After you file for bankruptcy, you will be in a better position to start rebuilding your credit. And even with a bankruptcy on your record, with good financial habits, you can re-establish yourself as a good credit risk. That means you can eventually be able to get a credit card, a car loan, or even purchase a home. Bankruptcy isn’t the end of your financial life. In fact, it can be a new beginning.
Starting Over
At Behm Law Group, we limit our practice to bankruptcy law, which means we specialize in helping people just like you. If you need a new start, don’t hesitate to give us a call.
