Will Filing for Bankruptcy Crush My Credit Score?
Very possibly—although it depends on how high your score is before you file. For many consumers, bankruptcy comes only after years of missed payments, defaults, and accounts sold to collections. Their scores are already in tatters by the time they finally get the courage to file for bankruptcy, so their score does not fall much. For other people, the fall is dramatic.
Check Your Credit Score
Few Americans know their current credit score. There are many ways you can check:
Credit scores are ranked from 300-850, with a higher score better. According to Value Penguin, the average score in 2015 was 695. About 50% of scores are above 680 but about a third are below 620.
If you’ve had multiple negative marks on your credit, your score might be in the 400s or so, which means filing will not cause a big drop. Other people might still have a credit score in the 700s or higher, so a bankruptcy will hit them hard. It is possible to lose 200 points or more because of bankruptcy.
Check Whether You Need a High Score
Although your credit score will probably tank, that might not be a problem. Consider the following:
In short, you need to carefully analyze your situation with an Oklahoma bankruptcy lawyer before deciding whether to file. There is no right answer for everyone.
Speak with a Bankruptcy Lawyer in Oklahoma City
Many consumers fear negative repercussion from a bankruptcy, but often these fears are overblown. Before filing, you should carefully consider whether this is the right option for you. To start the process, please contact Deborah Brooks & Associates. Initial consultations are free.