Will Bankruptcy Affect My Credit Score?

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When facing financial challenges, the question many Utah residents grapple with is, “How will bankruptcy affect my credit score?” Bankruptcy is a legal process that can provide relief from overwhelming debt, but it’s essential to understand its potential impact on your credit profile.

Impact of Bankruptcy on Your Credit Score

Filing for bankruptcy will almost certainly have an immediate negative effect on your credit score. The severity of this impact will depend on several factors, including your pre-bankruptcy credit score. Typically, individuals with higher credit scores might see a more significant drop than those with lower scores.

How Long Does Bankruptcy Stay on Your Credit Report in Utah?

Under Utah bankruptcy law, Chapter 7 bankruptcy (often called ‘liquidation’ bankruptcy) will remain on your credit report for 10 years from the filing date. On the other hand, Chapter 13 bankruptcy (a ‘reorganization’ of your debts) will stay on your report for 7 years.

It’s crucial to note that while the bankruptcy notation remains, its impact on your credit score lessens over time.

Rebuilding Credit Post-Bankruptcy

After bankruptcy, it’s essential to focus on rebuilding your credit. Establishing a history of on-time payments, keeping credit balances low, and avoiding taking on excessive new debt are all steps in the right direction. With dedication and financial prudence, many people have successfully rebuilt their credit post-bankruptcy.

Legal Guidance From an Ogden Bankruptcy Lawyer

Before making any decisions, it’s advisable to consult a lawyer on Utah bankruptcy law. The experienced team at Mountain View Law Group can provide guidance tailored to your unique situation. An Ogden bankruptcy lawyer from our firm will help you weigh the pros and cons, ensuring you’re informed about the long-term ramifications of your choices.

If you find yourself considering bankruptcy, reach out to our team at Mountain View Law Group for guidance you can trust.


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