Will Bankruptcy Affect My Credit? – Bankruptcy NH
Bankruptcy can be complicated and the impact it can have on an individual’s or a family’s credit can vary widely. Regardless of what type or the details of your situation, bankruptcy will have affect your credit. The bankruptcy attorneys at the Law Office of Joseph M. Annutto can help determine how bankruptcy will affect your credit and we will work to minimize the negative effects.
If you are filing for bankruptcy, your credit is already in trouble. How much depends on the amount of debt you have and the amount of money you make—your debt to income ratio. If you have pretty good credit and file for bankruptcy, your credit score will take a deep dip. However, if you have a high debt to income ratio, a large amount of debt and a small amount of income, your credit score will dip slightly. Any bankruptcy filing will remain on your credit report for up to ten years.
Benefits of Filing Bankruptcy
The one positive about filing for bankruptcy and how it will relate to your credit is that once you do file, the damage to your credit will stop. By letting your financial troubles compound, your credit only worsens. Bankruptcy basically nips that damage in the bud as it puts an end to collection attempts by creditors. If you file for Chapter 7 bankruptcy, your assets are liquidated and creditors are paid with the money raised and distributed by a trustee. Those debts are then wiped off your credit report. This helps you reestablish credit and prevent further damage. If you file Chapter 13 bankruptcy, you agree to a repayment plan that can last up to five years. This wipes out collection attempts, late fees, and fees for missed payments.
Once bankruptcy is filed, you may find you qualify for credit fairly quickly. This gives you the chance to start rebuilding your financial reputation. Our firm can review your specific situation and evaluate exactly what impact bankruptcy will have on your credit both in the long-term and short-term. As your trusted resource for honest information and representation, attorney Joseph M. Annutto can help you get back on track and on the path to rebuilding what you have lost.