Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Bankruptcy
Profile Image

Question By
dottiejay

0 Contributions
0 People Helped
Why does bankruptcy have such a negative effect on your overall credit?

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
7363 Contributions
3809 People Helped

In a bankruptcy, you are basically declaring to the world that you cannot pay your bills and want your obligation to pay them ended.  And that is what happens.  The people who trusted you enough to grant credit get stuck because you broke that trust. Given that scenario, would YOU trust someone again very soon after they walked out on the debt they owed you?  That is why it takes a long time after filing a bankruptcy before you can even try to get credit again.

Top Contributor
1775 Contributions
3024 People Helped

Could be that Bankruptcy is a RED Flag that someone had money issues and lenders need to know this so they won't lose money on a very risky loan.

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.