Bankruptcy
Bankruptcy does affect your credit. Though this is not a surprise, many are shocked to receive credit card applications weeks after they file bankruptcy. This is because even though bankruptcy can remain on your credit report for up to 10 years, removing the debt that you have will improve many things on your credit report. It will improve your reduce the amount of debt you have, improve your debt to income ratio, and close many lines of credit. These are the good things that bankruptcy can do. Bankruptcy will often increase the interest rate that you pay for future credit…though many find they were already paying a high interest rate before they filed bankruptcy.
Before you rush to file bankruptcy, please make sure to contact a bankruptcy attorney who will be able to explain how bankruptcy will effect your individual situation.
