How Will Bankruptcy Affect My Credit Score?

How will bankruptcy affect your credit score?  Your credit score is the product of complex proprietary algorithms created by the agencies that track credit information.  Almost any financial transaction can have some affect on your credit score.  Pay off a credit card, miss a payment, make a new purchase, open a new account and your credit score moves.

 

If you are behind on your credit card payments and other debts, chances are your credit score has been trending downward.  In that case, a bankruptcy filing is both good news and bad news for your credit score.  First, it drastically improves your debt-to-income ratio, increasing your ability to pay prospective new creditors.  Second, the bankruptcy filing itself is an adverse credit event.  As a result, there is no simple answer applicable in all cases.

 

The more important question is whether a bankruptcy case makes sense for you in view of your complete economic situation, your age and your financial goals.  Discussing those matters with a Pittsburgh bankruptcy attorney will help you get a better handle on how bankruptcy will affect your credit score and your future.

One comment on “How Will Bankruptcy Affect My Credit Score?

  1. Pingback: Filing a Chapter 7 Bankruptcy Fall Pittsburgh 2016 : Pittsburgh Bankruptcy Lawyers

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