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Effects of filing bk for business on personal credit

Date: Fri, 05/28/2010 - 03:54
Submitted by on Fri, 05/28/2010 - 03:54
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I had a business which went south during the economic downturn. Orders got scarce and debt kept mounting. I am planning to file bk and let the trustees liquidate the assets to pay creditors. However, I am worried stiff as how much this bk would affect my personal credit score. So far I was able to maintain good score of 700-ish and was never late on payments.


Bankruptcy can lower your credit score by 100 or even 200 points. However, this also depends on your overall credit. If you have a spotless credit, your score may be greatly hit. However, if you have various negative items on your report, filing bankruptcy will have a less negative impact on your score.


Submitted by SC on Tue, 06/22/2010 - 23:31

SC

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Hi,

By how much points bankruptcy will lower your credit score depends on your overall credit. If you have no negative items on your credit report, your score will be badly affected by bankruptcy filing. However, if there is already many negative items on your credit report, your score won't be greatly hit.

Generally bankruptcy lowers your credit score by 100-200 points.

Thanks


Submitted by lisawhite9 on Fri, 06/25/2010 - 02:13

lisawhite9

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Since your credit score has been around 700, get ready to lose around 100 points. But, I look at it in another way. It'll give you a chance to start afresh. Try not to commit the mistakes that have led you to the bankruptcy and work on your finances. Although, the bankruptcy will stay on your credit report, you can slowly build up your credit score.


Submitted by paulcahill80 on Wed, 07/21/2010 - 23:41

paulcahill80

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