Does filing for bankruptcy affect my credit score?

Yes, filing for bankruptcy does affect your credit score. This is because filing for bankruptcy is one of the most serious measures to take when dealing with debt, and creditors take this information very seriously. A bankruptcy filing will show up on your credit report and you can expect your credit score to drop significantly. Depending on the type of bankruptcy filed, the drop in your credit score can be anywhere from 200 to 350 points. Having a bankruptcy on your credit report will remain in your file for up to 10 years, although most creditors will only consider it for 7 years. During the time it is in your credit file, it will make it difficult for you to qualify for new loans or credit cards. You may also find it difficult to obtain certain types of employment or housing. Fortunately, Consumer Debt Defense Law in California can be used to help protect consumers from illegal and/or unfair debt collection practices. This includes stopping debt collectors from calling, as well as helping to negotiate with creditors to settle debts for an amount less than what is owed. Consumer Debt Defense Law can also prevent creditors from taking legal action against you and in some cases, can even help to reduce the impact of bankruptcy on your credit score.

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Does filing for bankruptcy affect my credit score?

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