How does Bankruptcy Affect Credit?
Filing for bankruptcy can significantly affect your credit, but for many people it’s the best long term option to prevent spiraling deeper into debt. After filing for bankruptcy, getting approved for loans and credit cards can be hard in the years immediately following; however, over time this difficulty will diminish and your credit will likely be better than it was prior to filing for bankruptcy, as long as you stay in good financial standing.
Because bankruptcy can affect the credit of anyone in Raleigh who files for it, we at the Bradford Law Offices, PLLC, believe it is important to understand how bankruptcy can affect your credit, both in the short and long term. This way you can be prepared for some of the difficulties you face and the benefits you will enjoy.
How Bankruptcy Affects Crediy
One of the biggest details to keep in mind regarding your credit score is that if your score was already fairly low before filing for bankruptcy, it won’t drop too much relatively. The ways in which bankruptcy will affect your credit include:
- Your bankruptcy filing will be on your credit report for 10 years
- Late payments and unpaid debts will be on your credit report for seven years
- If you apply for a loan or life insurance policy over $150,000 or take a job with an income over $75,000, credit agencies can keep your bankruptcy on file for over 10 years
Even with these in mind, bankruptcy may still be the best option for people struggling with difficult debt. Filing for bankruptcy allows you to have a fresh financial start with credit you can build up fairly quickly if you adjust your lifestyle and spending habits.
Discuss Credit and Bankruptcy with a Raleigh Lawyer
The lawyers from the Bradford Law Offices, PLLC, understand that facing the prospect of filing for bankruptcy can be scary, but is often the best option for you and your family. We are prepared to handle your case with the compassion and care you deserve. To speak with an attorney about how bankruptcy will affect you, contact our offices at (919) 758-8879.