While taking a toll on your credit score for a significant amount of time, bankruptcy offers at least the ending of your financial hardships within a decade of your filing. Conversely, ongoing legal and collection efforts will continue to erode your credit standing.
Bankruptcy will affect your credit in several key ways that can have both short term and long term implications for your credit.
How Bankruptcy affects my credit:
It stays on your credit for 10 years
Credit score drop of 160 to 220 points
Difficulty reestablishing credit
Negatively impact ability to rent
A bankruptcy is not the end of the world, although at times it may seem the case as you work through the process, and the main antidote to that is time.