Posted on: 22nd Jul, 2007 06:08 am
what are the consequences of filing bankruptcy and how does the same affect the credit score.
Hi hanth,
Filing bankruptcy isn't a good idea as far as maintaining a reasonable score is concerned. One should go for it only if he cannot find out any suitable option to get out of debts. This is because it affects the credit score in a negative way and this is reported to the bureaus by the creditors or lenders. And, the credit report of a person filing bankruptcy displays this negative item for about 7 to 10 years. So, it becomes difficult for anyone to secure a loan in the meantime.
Take Care
Filing bankruptcy isn't a good idea as far as maintaining a reasonable score is concerned. One should go for it only if he cannot find out any suitable option to get out of debts. This is because it affects the credit score in a negative way and this is reported to the bureaus by the creditors or lenders. And, the credit report of a person filing bankruptcy displays this negative item for about 7 to 10 years. So, it becomes difficult for anyone to secure a loan in the meantime.
Take Care
"What are the consequences of filing bankruptcy and how does the same affect the credit score."
Bankruptcy means a big damage to your credit profile. Try to avoid it if possible.
Bankruptcy means a big damage to your credit profile. Try to avoid it if possible.
Hi Hanth,
Don't go for bankruptcy as it is not the ultimate solution to pay off your debts. Bankruptcy affects your credit score negatively and also stays on your credit report for 10 years. And after a bankruptcy, you may not qualify easily for another loan.
To know more on the affect of bankruptcy, you may refer to: http://www.mortgagefit.com/bankruptcy/after-bankruptcy.html
Don't go for bankruptcy as it is not the ultimate solution to pay off your debts. Bankruptcy affects your credit score negatively and also stays on your credit report for 10 years. And after a bankruptcy, you may not qualify easily for another loan.
To know more on the affect of bankruptcy, you may refer to: http://www.mortgagefit.com/bankruptcy/after-bankruptcy.html
Normally bankruptcy is one big hit to your score that stays on your record for 7-11 years but once it is done it doesnt affect your score anymore and your creditors are not allowed to damage your score by reporting late payments. Your debts are satisfied in one manner or another and you get to start from the beginning on your credit. While its a bad mark on your credit and you stand to lose assets if you have them it can be better then alternatives of not paying your bills or going to debt consolidation outfit. For more info contact an attorney and make an educated decision.
