What are the effects of bankruptcy?

There are both positive and negative consequences of bankruptcy. These are just a few of the impacts of bankruptcy that you can expect:

  • Lower credit score: A bankruptcy can stay on your credit report for seven to ten years and during that time, you will see a lower credit score as a result. Eventually, though, your credit will get better and possibly be stronger than it was in the beginning.
  • Difficulty getting loans: As the bankruptcy is on your record, many companies will not want to approve you for loans or other forms of credit.
  • A fresh start: At the end of your bankruptcy, you will have a fresh financial start so you can do things right and begin to rebuild your life. It may take some time, but you will not have to battle your debts to achieve your goals.
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