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chapter 7 bankruptcy Archives

Tips for recovering from bankruptcy

A Lending Tree study found that most people who file for bankruptcy recover with a credit score of at least 640 within a few years. Some people in Louisiana may be among the 40 percent whose credit score reached 640 within a year. Within two years, nearly two-thirds had this score.

How bankruptcy impacts a person's ability to borrow

There were more than 700,000 personal bankruptcies filed in 2017 according to a study done by LendingTree. Medical and credit card debt were among the most common reasons why Louisiana residents filed for protection from creditors. Although bankruptcy can help a person overcome a debt, it can also cause credit problems in the short-term. For instance, someone who is a year removed from bankruptcy will be charged an interest rate of 10.8 percent.

Comparing Chapter 7 and Chapter 13 bankruptcy

When someone files for bankruptcy, they will have their choice of a number of different chapters. The two most common forms of personal bankruptcy, though, are Chapter 7 and Chapter 13 bankruptcy. These two types of bankruptcy dominate the landscape, and they compose most personal bankruptcy filings in the United States.