How bad can a bankruptcy ruin your credit?
A bankruptcy on your credit report can drop your credit score by as much as 200 points!
The length of time that a bankruptcy filing stays on your credit report depends on what type of bankruptcy you filed: Chapter 7 bankruptcy stays on for 10 years and Chapter 13 for seven years. About one third of bankruptcies filed are Chapter 13.
Chapter 7 bankruptcy: Also known as liquidation bankruptcy, is the most common form of consumer bankruptcy and is usually completed within three to six months. Those who file for Chapter 7 will no longer be required to pay back any unsecured debt (loans that were issued solely on creditworthiness), like personal loans, credit cards and medical expenses, but they may have to sell some of their assets to settle secured loans.
Chapter 13 bankruptcy: This form of filing offers a payment plan for those who have the income to repay their debts, just not necessarily on time. Those who file are still required to pay back their debts, but instead over a three-to five-year time frame.
What should you do if you have a bankruptcy on your credit report? Getting a bankruptcy deleted from your credit report can be very hard to do. Working with an experienced credit repair company can help make it possible. You’ll want to start first by getting all three of your credit reports, reviewing them for errors, filing disputes, and more.
Working with a credit repair agency like TCC will take the appropriate steps to remove the bankruptcy and quickly and efficiently as possible. Get started today.