Late Payments May Still Appear On Your Credit Report After You File Bankruptcy
One worry that many people who come in to meet with us for a consultation is how bankruptcy will affect their credit report and credit score. Oftentimes, their credit report and scores have taken big hits. By the time they come to consider bankruptcy, most of my clients have gotten behind on their payments. Naturally, late payments will result in a negative hit to their credit report and score.
Bankruptcy is commonly thought of as a “clean slate” when it comes to peoples’ credit reports. The reality is a little more complicated. First, Chapter 7 bankruptcy will appear on your credit report for 10 years after we file your case; chapter 13 will appear for seven years from your filing date. Second, the debts that you discharge will show a zero balance after you file. However, any late payments to those creditors will remain on your credit report for seven years from the time of those late payments.
How bankruptcy will affect your credit report and credit score is only part of what you should take into consideration when thinking about bankruptcy. Bankruptcy will relieve the stress of having to deal with collectors asking you to pay debts you can’t afford, as well as stopping any lawsuit and garnishment. Those factors may have more weight than what your credit score will be if you file.
If you have any questions about the bankruptcy process, we’d be happy to meet with you for a free consultation. You’ll meet with an experienced attorney who can help you find the answers you’re looking for. You can schedule an appointment by calling 303.331.3403 or by using our online scheduling system.
