Though filing for bankruptcy can be a stressful and even frightening experience, one of the biggest concerns people in this position have is the negative effect it will have on their credit. Not only will filing lower the credit score, but it will also make it difficult to secure loans or apply for credit cards in the future. But this is not a permanent issue, and eventually over time, credit can be rebuilt. Of course, how long bankruptcy stays on your credit depends on which type of bankruptcy is filed.
With a chapter 7 bankruptcy, a person’s non-exempt assets will have been sold, and the proceeds will have been divided among any creditors. This process may take a few months to complete. Over time, these debts will slowly lose their