The truth around bankruptcy

Humberto Garay Humberto Garay

Humberto Garay

Owner at Credit Right Services

发布日期: 2021年5月5日
+ 关注

A bankruptcy (BK) will affect your score more than just about anything. Worse, it will affect it for many years. In the first few years after the BK, you may not be able to get loans at all. In short, a BK is a legal proceeding that either forgives you of your debts or allows you to pay off just a small fraction of your debt. It will nearly ruin your rating at first, but it will also allow you to dig out from overwhelming debt and reestablish a good rating again after years. 


A BK will no longer show up on your report after ten years. If you are very seriously in debt and have no way of repaying your bills, a BK can help you by stopping collection call agencies and other problems. Also, if you have been very negligent in paying your large debts, your rating has already likely suffered greatly.


While a BK will depress it even further, at least it will give you the chance to restore your credit in the long run by giving you a “clean slate” free from large debts.

If you haven't done so you can book a free credit repair consultation

要查看或添加评论，请登录

Humberto Garay的更多文章

  • How Much Does It Cost To Live With Bad Credit?
    2022年1月5日

    How Much Does It Cost To Live With Bad Credit?

    Just how much more does life cost with a low credit score? The answer is probably far more than you think! FICO scores…

  • New Debt- The 10% Rule
    2022年1月3日

    New Debt- The 10% Rule

    Accumulation of new debt accounts for 10% of your total credit score. This aspect of the credit score is comprised of…

  • Does Your Income Effect Your Credit Score?
    2021年12月13日

    Does Your Income Effect Your Credit Score?

    CFA and Washington Mutual conducted a study on consumer awareness of the credit scoring system. Here are interesting…

  • 2 Common Credit Myths
    2021年12月8日

    2 Common Credit Myths

    The media, newspapers, and internet are full of information, but sadly, much of the information concerning credit is…

  • Enter the Consumer Finance Protection Bureau (CFPB)
    2021年12月8日

    Enter the Consumer Finance Protection Bureau (CFPB)

    In 2010, the Consumer Finance Protection Bureau (CFPB) was created, primarily in response to the preceding failures of…

  • e-OSCAR’s Batch Interface
    2021年12月7日

    e-OSCAR’s Batch Interface

    E-OSCAR is the system that allows data furnishers to electronically communicate with credit reporting agencies…

  • 1 Common Credit Myth
    2021年12月6日

    1 Common Credit Myth

    The media, newspapers, and internet are full of information, but sadly, much of the information concerning credit is…

  • Length of credit history accounts for 15%
    2021年11月27日

    Length of credit history accounts for 15%

    “Time in the bureau” accounts for 15% of your credit score. The older you are, and the longer you have had open credit…

  • Free Credit Reports
    2021年11月24日

    Free Credit Reports

    Millions of consumers each year pay for credit monitoring access. Some of the most common monitoring services are…

  • Fico Vs Vantage Score
    2021年11月22日

    Fico Vs Vantage Score

    FICO now competes with VantageScore, but Equifax, Experian, and TransUnion still offer both score options. This is…

社区洞察

其他会员也浏览了