Bankruptcy History
Bankruptcy is essentially a term for the federal process of choosing to eliminate or repay debt. Many consider bankruptcy to be one of the most substantial dents in a favorable credit score, and it can be nearly impossible to be approved for any type of loan or credit line in the years that follow.
Credit and FICO scores are typically impacted by bankruptcy for 7 to 10 years, depending on which chapter of bankruptcy is declared. Accumulated debt account for over 30% of a consumer’s credit history, so declaring bankruptcy is certainly known to detrimentally affect anyone’s score.
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