Don’t Let Bankruptcy Kill Your Credit Forever
You won’t be surprised to find bankruptcy on the list of credit killers you want to avoid. When you choose to file for bankruptcy protection from your creditors, the impact to your credit scores will be devastating and long-lasting. The temptation of walking away from overwhelming debt may sound appealing, but it is important to only use bankruptcy as the absolute last resort.
How Bankruptcy Impacts Credit Scores
Bankruptcies will have a negative impact on two different sections of your credit reports. First, it will show up in the public record section of your three credit reports. In addition to the public record, each debt that was included in the bankruptcy will be noted as such on your credit reports. Each account will be considered a serious derogatory.