For some New Jersey residents, there comes a point when they must make challenging decisions regarding their finances. Filing for bankruptcy is a powerful tool for those who are drowning in debt. While the bankruptcy process can help eliminate some or all of the debts of an individual, it is important that debtors understand the aftermath of a bankruptcy filing.
When debtors reach a point where their best option to deal with their financial problems is filing for either a Chapter 7 or Chapter 13 bankruptcy, they often ask how the process will impact them immediately and in the future. One major factor to consider is how the bankruptcy process will affect the debtor's credit score. While it is true that individuals who file for bankruptcy will initially see a negative impact on their credit score, it is possible for one's credit to be rebuilt after a bankruptcy.