Many people are concerned about the impact of filing for bankruptcy on their credit reports. The fact is that filing for bankruptcy will definitely impact your credit rating, but bankruptcy does have an impact on your score. So, think about this carefully, because it could very well affect you over the long run.


In general, filing for bankruptcy does NOT wipe out all debt, which is why you should get professional help on whether or not filing for bankruptcy is right for you. There are specific forms of debt that are not going to be wiped out, and some of those are auto loans, student loans, etc. In order to keep your debt from being wiped out, you will still need to make payments.


You may also be allowed to keep a certain amount of your property. This is determined by each state and varies from state to state. There are many other factors that determine what your property can be kept as well. So, talk with a bankruptcy attorney before filing for bankruptcy.


One important thing to know about filing for bankruptcy is that you MUST have a job in order to qualify. If you’re in the military or you have a cosigner that has a job, you will need to have the cosigner’s name removed from your bankruptcy petition. It is considered grounds for denial of the petition. So, speak with your bankruptcy attorney before you begin your petition.


Once you decide to file for bankruptcy, you’ll go to a bankruptcy court to receive a decision on your petition. Your petition must be filed within two years of when you first started paying your debt. The bankruptcy court will give you a decision on whether you can file for bankruptcy, which you can then either accept or deny. If you’re unable to file for bankruptcy, you can consider negotiating your debt with your creditor, which is a more reasonable approach than declaring bankruptcy in the first place. Once your petition is denied, you can ask for a retainer from the court.


Bankruptcy has a negative impact on your credit report, but in some cases, it will be less negative than the impact of declaring bankruptcy. If you have a good payment history and you’ve been repaying your debt on time, your credit report will remain intact. The only way for your credit report to suffer is if you’ve been late with your payments. Paying more than you owe on time is going to negatively impact your credit report.

Some creditors will not be willing to work with you on negotiating your debt if you’re declared bankrupt, although most will, because bankruptcy has a negative impact on your credit report. If you pay off all of your debt and stay out of bankruptcy court for three years, they will be more than happy to assist you with negotiations. Be prepared to offer them a percentage of your debt as payment in return for a retainer fee, but be sure to have the account payments in writing. They want to make sure your account is paid in full

It is important to note that bankruptcy will not cause your credit report to improve automatically. You will see an improvement on your report over time, but it may take as long as a year or so to show any real improvement, depending on how much debt you’re currently dealing with.

If you are declared bankrupt, you will still have access to credit. There are many companies who will be willing to work with you to help you get back on track with credit after you’ve filed for bankruptcy. Your credit score will not drop immediately, however, and will remain the same for as long as you stay out of bankruptcy court. However, it is likely that you’ll encounter a decline in your credit score after about four years from being declared bankrupt, unless you work hard to fix your problem. The key is to stay vigilant and keep up with your payment schedules to make sure your account stays current.

There is also the possibility that you may be required to pay attorney’s fees to the bankruptcy court for their services. These fees are determined by your state, but will generally be around 10% of the total cost of your filing. If your bankruptcy is granted, this payment will be waived. of course, you may be able to find a lender willing to help you with these fees if you can show financial hardship, and the lender may even offer to help with the costs of filing your bankruptcy petition.

No matter what your circumstances, filing for bankruptcy should be considered an option only if you can’t afford it. There are people who have filed and been declared bankrupt, but no financial troubles later on, which means they should never file again.