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How Bankruptcy affects your credit report and your life

When to file for bankruptcyBefore you file for bankruptcy in Wellington you need to know a few things. This is not a decision you make lightly because it has far reaching effects on your life and credit for years to come. Here we will take you through the advice we have to know before you throw yourself into it.

What bankruptcy really is?

What bankruptcy is really saying is that you couldn’t pay your bills. It’s not always the fault of the person that is filing. Sometimes there are crisis that couldn’t be avoided or yes, some less than favorable decisions that made your financial life go into a tailspin. But, the point is—the people that will be looking for this information on you aren’t going to know you or your story and frankly they won’t care so think about this and secure a bankruptcy attorney so they can discuss whether it’s a good fit for you or what type of bankruptcy is a good fit for your situation.

Types of bankruptcy:

There are many types but the main ones are chapter 7; chapter 11 and chapter 13. An attorney can go deeper with you about them but they basically mean this. Either you are an individual or a business and you either get to keep your assets or you don’t or you can keep some.

How long it stayed on record

Although you may see debt fulfilled on your credit report after a certain period of time—it still shows as bankruptcy on your credit report for 7 years. This means maybe waiting a long time before you can rebuild your credit again or even buy anything of value. This can hurt or maybe it will hurt less than the financial hardship you are in now and be a relief that’s why you talk to a pro.

Credit Counselling

Consolidating your credit with a credit counseling company will also be looked at as a bankruptcy on your credit report for the same amount of time. Only a professional can help you decide.