Owing to young age and not having adequate financial knowledge, I messed up my finances. I had acquired quite a significant credit card debt from my college days which I’m still struggling to fight and pay back. Once I met a financial adviser who suggested me to file a bankruptcy but my parents tell me that doing so, I’ll not be able to buy a home as I will not get a loan in the future. Moreover, my credit score will drop.
Wondering what will be my credit score be after bankruptcy. Even if I have to file one, how to improve credit score after Chapter 7 or 13.
However, in case, if you have to file bankruptcy, it's gonna hurt your credit score badly. Chapter 13 bankruptcy is deleted seven years after filing date from your credit report. Whereas, Chapter 7 bankruptcy is deleted from your credit report after 10 years of filing date.
After that time, it's gonna be very tough for you to improve credit score. Some credit unions or creditors can offer you a credit card with high interest rate as they know you won't be able to file for bankruptcy again within a certain time. So, you can charge that credit card for small amounts and always pay off your outstanding balance in full and on time!
Sub: #1 posted on Mon, 12/09/2019 - 22:22Craigh.terry
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Your credit score may drop by 200 points due to bankruptcy. But it can also go up if your credit-utilization ratio becomes 0. Both the possibilities are there. Take out a secured credit after getting a bankruptcy discharge. Pay your bills in full every month. It will help you to rebuild credit.
Sub: #2 posted on Tue, 12/10/2019 - 02:53Nick Jonas
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Sub: #3 posted on Tue, 12/24/2019 - 00:04tiarajoseph11
(Posts: 470 | Credits: )