Bankruptcy Affects Your Credit Score

Bad Credit, Credit Score, Credit Repair > Credit Repair Info > Credit Score Bankruptcy is a procedure you can go through in a federal bankruptcy court that allows you to discharge all or a portion of your debt. From Wikipedia: Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay their creditors. A declared state of bankruptcy can be requested by creditors in an effort to recoup a portion of what they are owed; however, in the overwhelming majority of cases, the bankruptcy is initiated by the bankrupt individual or organization. Two types of bankruptcies are available to consumers: Chapter 7 bankruptcy Chapter 13 bankruptcy. Chapter 7 bankruptcy, also known as liquidation bankruptcy, let the debtor discharge all of his or her debts. Chapter 13 bankruptcy, also known as reorganization bankruptcy, allows the debtor to keep most assets and to arrange for partial or full payment of the debts owed over three to five years. Bankruptcy Benefits One of the most important and beneficial things about bankruptcy is that the minute you file your petition with the court stating that you are asking to be declared bankrupt, all of your creditors are stopped from any collection attempts. This is called an automatic stay. More info on Bankruptcy: Tips For filing Bankruptcy Resources for filing Bankruptcy REPLY to this article Share this: Twitter  Facebook  More Also read these articles Definitions Related To Credit Repair How Your Credit Score Is Calculated The Basic Format Of A Credit Repair Letter FICO Score Explained Bad Credit Affects Buying Power   Leave a Reply Name (required) E-mail (will not be published) (required)   <<   Enter code Return from Bankruptcy And Credit Score to Credit Score