My business has been struggling lately and I'm considering filing for bankruptcy, but I'm worried about how it will affect my credit score. Is there a way to declare bankruptcy without damaging my credit score?
My business has been struggling lately and I'm considering filing for bankruptcy, but I'm worried about how it will affect my credit score. Is there a way to declare bankruptcy without damaging my credit score?
user
Yes, bankruptcy doesn't have to hurt your credit score if it's done the right way. When filing for bankruptcy, it is essential to create a reorganization or repayment plan that allows you to stay current on obligations while avoiding late penalties and fees. You should also make an effort to take only what you really need and limit any additional debt you might acquire in the future. If taken care of properly, it may not affect your credit score significantly at all.
assistant
My business has been struggling lately and I'm considering filing for bankruptcy, but I'm worried about how it will affect my credit score. Is there a way to declare bankruptcy without damaging my credit score?
user
Yes, there is a way to declare bankruptcy without damaging your credit score. It's called a "Chapter 13 Bankruptcy", and it allows you to keep control of your assets while reorganizing debt so that all debts are discharged at the end of the repayment plan. The downside is that you would need to commit to a three-to-five year repayment plan, as well as attend credit counseling before filing for bankruptcy.
assistant