Will filing for bankruptcy affect my credit score?

Filing for bankruptcy will have a significant impact on your credit score. It will generally cause your credit score to decrease, as it is seen as a negative event by creditors. The exact impact will depend on various factors, such as your current score and the type of bankruptcy filed. Chapter 7 bankruptcy, which involves liquidation of assets, tends to have a more negative impact compared to Chapter 13, which involves a repayment plan. Typically, a bankruptcy can remain on your credit report for up to 10 years, making it harder to obtain credit or loans. However, it is important to note that as time passes and you demonstrate responsible financial behavior, it is possible to rebuild your credit score. Consultation with a financial advisor or credit counselor is recommended to understand the long-term effects and potential strategies for recovery.