Unfortunately, if you are behind on your bills, your credit is already be bad.
Bankruptcy will probably not make things any worse.
A bankruptcy can appear on your credit record for ten years from the date your case was filed.
Bankruptcy discharges out your old debts, you will be in a better position to pay your current bills, and you may be able to get new credit.
Of course, you will have to pay a higher interest rate than if you had paid your bills on time, but, that happened before you filed bankruptcy.
Otherwise, why did you file?
The first point should be, there is no such thing as a static credit report.
Credit reports are made to order.
That is, the creditor contacts the CRA (Credit Reporting Agency, e.g. Trans Union) and orders a report.
They may ask to emphasize how long you have been at your job, or if you are buying a house, or whatever they determine is important to them.
The CRA then reaches out into cyber space and gathers your information as of that point in time.
Your file is not sitting on their computer waiting to be printed out.
So, anyone has different credit scores, at the same point in time, depending on what the crditor is looking for.
If you file bankruptcy, debts discharged in your bankruptcy should be listed on your report as having a zero balance, meaning you do not owe anything on the debt.
Debts incorrectly reported as having a balance owed will negatively affect your credit score and make it more difficult or costly to get credit.
You should check your credit report after your bankruptcy discharge, and regularly after that, and file a dispute with credit reporting agencies if any information is not correct.
Kurt O’Keefe, Esq.
OFFICES IN WAYNE, OAKLAND AND MACOMB COUNTIES
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