Late payments: Will They Still Show on My Credit Report after Bankruptcy

Late Payments: Will They Still Show on My Credit Report after Bankruptcy in Littleton, Centennial or Aurora?

Will late payments still show on your credit score? Read more in our blog.One of the biggest concerns our clients have is related to their creditor scores. Often, this is for good reason. By the time a person files for bankruptcy in Littleton, Aurora or Centennial, there have usually been many late payments and their credit score is looking a little rough. Often, people wonder if bankruptcy will “clear” their credit report and remove any record of late payments. The truth is (as usual) a bit more complicated.

Bankruptcy is a Clean Slate in Littleton, Aurora and Centennial: But Not Necessarily for Late Payments on Credit Scores

Yes, bankruptcy provides you with a fresh financial start. Automatic stay allows you to have peace from your creditors, and both Chapter 7 and Chapter 13 bankruptcy provide a way to be free from the stress of paying bills you simply can’t handle. When it comes to your credit score, however, it is important to understand that a Chapter 7 bankruptcy will stay on your credit report for 10 years after you file. Chapter 13 bankruptcy stays on your credit report for 7 years after you file. This includes the repayment period. When debt is discharged, it will show as a zero balance. However, any late or missed payments you have with creditors will stay on your credit report for seven years. That’s just the way it works. Don’t be fooled by “credit repair” companies who say they can remove late payments and other negative items from your credit score. No one can remove these items from your credit score if they are legitimate.

You Need a Bankruptcy Attorney in Aurora, Littleton and Centennial

If you’re concerned about how filing for bankruptcy will affect your credit, stop and think. Declaring bankruptcy in Aurora, Centennial or Littleton will relieve the stress of unpaid bills and harassing calls from creditors. It  can also protect you from lawsuits and wage garnishment. That peace of mind may be worth more than the effect bankruptcy will have on your credit score.