If you’re in debt and need to file for bankruptcy, what will happen with your credit score? We’ll discuss that next. As a general rule of thumb it can take years before getting back on track financially as well as repairing any damage done by an accident with files like Experian®, Equifax® or TransUnion® – so don’t wait!
The effects of bankruptcy on your credit score depend.
Bankruptcy will likely lower it initially, but that doesn’t mean you can never rebuild again! The good news is filing a Chapter 13 or 7 could help stop the bleeding from accounts constantly being late and maybe make things easier when looking into repossession status; however – these requests may stay indefinitely since they didn’t have an initial positive affect in improving how much people pay off during this time period (or at least not enough).
Pros:
The pros of filing Chapter 13 are that unsecured debts will be eliminated, which can help create more financial stability in the future. Your eligibility for a loan may also increase with this option as you’ll have better credit and less debt on your record than if no plan had been filed at all; however there is always risk associated when going through repayment plans or providing any information regarding personal finances during an application process – so make sure before taking such actions that it’s worth sacrificing short term relief (again) just to give yourself peace of mind about where things stand now?
Cons:
Filing for bankruptcy means that you will lose the house and your job. However, there are many benefits of going through with this process as well: possible misuse or fraud charges could make it difficult in finding employment which might lead to jail time if convicted on these counts too.
Rebuilding your credit after bankruptcy
The best way to rebuild a good credit rating after filing bankruptcy is the same thing you should do if it’s not too damaged: pay on time every month.
Make sure not spend more money than what comes in, so that debt doesn’t pile up again and cause even worse problems down the road! As long as there aren’t any other debts owed by individuals or businesses in your name (such as unpaid utility bills), then following these simple steps will help keep things under control while rebuilding equity lost due previous financial troubles.
Make sure you’re still paying off any debts mentioned in your filing.
Stay up-to-date with the bankruptcy court and keep records of all payments made for creditors, as well as fees owed them; make these on time too! Getting a copy of one’s credit report can also be helpful when making future financing decisions because it will show whether there have been any changes to information previously given (for example an updated birth date). Keeping balances low now might help rebuild what was lost during this difficult period so that we don’t needlessly take another hit later down road which could truly hurt our chances at getting loans if necessary.
Whether you want to improve your personal or business credit, YMA Financial can help you today.
Call us today:
864-249-1439