How Does Chapter 7 Bankruptcy Affect My Credit?

Chapter 7 bankruptcy will likely make your credit score drop initially.  After an initial drop we have seen our clients steadily rebuild their credit scores to the level, or better, of many of their friends or family members.  Bankruptcy allows you to wipe out your debt so you can start fresh and have a legitimate opportunity to have your fresh financial start.  Most people find it incredibly difficult, if not impossible, to improve their credit when they have large amounts of debt.  Chapter 7 bankruptcy will wipe out the majority of this debt and allow you to reestablish your credit worthiness.