Chapter 13 Bankruptcy and Your Credit Score

One common bankruptcy question is whether going through the process will negatively affect your credit score or not.  If you are filing for bankruptcy because you have been struggling with debt for some time, then your credit score is probably not going to change too much do to filing.  However, if you are filing for bankruptcy and you do have a high credit score, the score may take a small dive due to filing.  

During a Chapter 13 you are generally not allowed to take on any new credit, but once your case is discharged, you are able to start regaining your credit score, though you may have to pay a higher interest than usual for the first few years. After the discharge, you will be able to get your credit score back up to where it was.

For more information on how Chapter 13 Bankruptcy can affect your credit score, please contact your local bankruptcy attorney.