It is difficult to estimate exactly how much bankruptcy will affect credit scores because it depends on what is on your credit report and what your current credit score is. If your credit score is very high, you may experience more of an impact on your credit score than if your credit score is already very low. In any case, the initial impact on your credit score should not be the most important factor. You should focus on what the bankruptcy will do for your credit score after your debts are discharged.
After a bankruptcy, your debts are eliminated or reorganized. Bankruptcy will get you back to current on all the accounts you include in the bankruptcy. This allows your credit score to immediately start to improve. Most debt consolidation solutions may only resolve some of your accounts, resulting in left-over accounts which are still continuing to damage your credit score. Bankruptcy can resolve all of your outstanding debt which will allow for immediate credit score improvement. We have had many clients report to us that they immediately received credit offers from banks after discharge and have also had clients report that they bought homes and automobiles only two years after filing for bankruptcy.
If you are in the Southern California area and you are interested in more information about bankruptcy, you can make an appointment with Bankruptcy Law Professionals at any of our office locations including La Mirada, Riverside and Tustin. Call us at 855 257-7671 to schedule your appointment. We look forward to working with you.