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Been Bankrupt – How It Can Hurt Your Credit Score

Been Bankrupt? The way it Can Hurt Your Credit Score

A lot of things can have a negative effect on a person’s credit score. Among included in this are late credit card payments, past due medical bills or apartment rentals, an extremely large debt weight, and bankruptcy. During the past five years, more and more people have filed for bankruptcy, either because of the lingering recession, or because of personal financial blunders. While filing for bankruptcy may help an individual get a fresh start, additionally, it has its share regarding long-term negative effects, especially on the credit score. Here’s just how bankruptcy can hurt your own credit score.

Why Bankruptcy Can be a Tough Thing To Handle

Bankruptcy brings more than difficulty sleeping and bad dreams for that individual. It can also possess a gloomy effect on their credit score. Whenever a individual who just filed for bankruptcy can be applied for mortgages and loans, it puts a heavy frown on the faces of creditors and also lending institutions. Insurance premiums for people who’ve experienced bankruptcy will also be more costly than for individuals who have stable financial data. A person who’s knowledgeable bankruptcy will also be classified like a high-risk customer, hence the particular rejection of his / her loan application. Before you file for bankruptcy, remember that bankruptcy is not a good way out of your financial clutter, because it will have significant implications on your credit record, and will also seriously hinder your business dealings with others.

Bankruptcy Lowers Credit Scores

Whenever a person files regarding bankruptcy, their credit score will certainly automatically get a 200-point deductions, and this greatly affects their own chances of availing for various loans. If a person was lacking a satisfactory credit score just before bankruptcy, he or she will definitely have a tough time rebuilding their credit score, and rehabilitating their own financial base in just a reasonable period of time. But if you are confident of repairing your financial picture , and you’re confident of rebounding from your financial troubles, bankruptcy should not be a ghost which will keep haunting you for a long time, as long as you take tangible steps to change your wasteful financial habits, and improve your loan repayment features.

Bankruptcy Also Taints Your Credit history

Apart from wrecking your credit score, bankruptcy also taints the long-term financial history, which will make things tough for you to do main transactions and company purchases. Availing a bank loan may be just as tough too, since most lenders will have next thoughts of offering their services to you, especially if they will see your bankruptcy record.

The way to Stay Afloat Despite Experiencing Bankruptcy

Whenever you desire to make a business purchase, or you wish to get a housing loan after an episode of bankruptcy, here are some helpful tips to follow. Try to find lenders who still accept clients that have bankruptcy records, since there are a variety of them that are functioning today. These lenders generally agree to provide you a small loan, provided they observe that you’re able to rebuild credit value within two or three a long time. All you need to do is merely wait for two years after your bankruptcy, so that you can restore your financial foundation, and improve your credit rating as well.

  • Kendall says:

    We really are a couple several weeks from seriously engaging in the housing industry. She’s an excellent Credit score (within the 750-800 range) I’ve one that is not too good (it’s within the 660-710 neighborhood).

    Just how much, if whatsoever, in percentage points are we able to expect my Credit score to harm us beside me like a cosignee and her because the principal customer on our mortgage? Will the cosignee hurt credit rates or perhaps is he simply seen being an earnings source without added risk?

    February 19, 2013 at 5:45 am
  • Chas says:

    My soon to be ex wife has been getting child support AND mortgage deviation from me for over a year. I just found out today that she hasn’t made the mortgage payment or the payment on the 2nd mortgage (which is only in my name) for over a month. She is ruining me credit without informing me. She now plans on filing bankrupt which I have NO intentions of filing with her. We are not divorced yet.

    So here are my questions:
    Do I have any way to go after her for damaging my credit score without informing me?
    Since I have been paying her the mortgage deviation can I request a credit for the monies that I paid that she did not use to make the mortgage payment?
    Will her filing bankrupt hurt my credit or affect me in any way? I am not on any of her credit cards
    Can I sue her if my credit is affected by her negligence to inform me of her not paying the mortgage and second mortgage? and if so what documents do I need to prove it?
    All help would be appreciated.
    We do not live in the same house. I left her June 2010 and then I filed for divorce Aug. 2010 and she refuses to give me one. Says I owe her because I left her. So I can’t pay the mortgage myself because she lives in the house. I have consulted a lawyer he says it won’t affect me, but everything I’m finding and from talking to a few other lawyers I have found different so I want to make sure I’m not getting screwed because she is a witch. The mortgage company never contacted me either about any missing payments.
    Listen here Happy-2 first off I can’t afford to pay her mortgage payment plus my rent payment okay. Second I didn’t find out about anything until last night from my lawyer. Third my ex gets the bills mailed to the house that she lives in and that I am not allowed to live in. If your going to respond please don’ be a douche like mr Happy-2. I want real answers and suggestions not just arrogant responses.
    Jmbunnie – thank you. I am currently calling these accounts to see when last payments were made and such. I will now be asking them to send me all paperwork on them. I figured I would get stuck some how getting affected by the bankruptcy. I know that Pa is a non community state so all credit cards that are solely in her name will not affect me and a bankruptcy lawyer told me that as well however if she waits till bankruptcy for the house, that will effect me. I have been trying to get her to sell the house for over a year and she just says no I will when I am ready. Does anyone know how to request a credit for the mortgage deviation paid to her during the period that she did not pay it? Do I just contact my domestic relations office?

    June 14, 2013 at 7:34 pm