If you are considering bankruptcy filings in Pennsylvania, then chances are that your credit has already taken a few hits. You may have a few bills that you defaulted on or you may have had an item or two repossessed. Maybe the bank has even threatened to take your home. All of these things, while emotionally difficult to weather, may also damage your credit. So, will filing for bankruptcy make it better or worse?

That may come down to your spending habits, your current and future financial stability and how far things have spiraled out of control. If you do not file for bankruptcy, your credit score may continue to take dings until you find a way to sort through the debt on your own. The longer people procrastinate, the further into debt they might sink and the more difficult it is to rebuild their credit history.

In contrast, bankruptcy has a specific time limit. Credit Karma estimates that bankruptcy may remain on your credit history for seven or 10 years, for Chapter 13 and Chapter 7, respectively. When you first start out, that big hit to your credit score may seem discouraging. It may take some time for you to get back on your feet and rebuild trust with lenders.

However, the recovery process is not as long or terrible as many people assume it may be. Healing your credit score requires patience and responsible spending behavior. The silver lining to losing eligibility to some credit offerings is that it may compel you to live within or below your means and curb spending habits that put you in a bad financial place again.

This article shares information on how bankruptcy may affect a person’s credit. It should not be misconstrued as or used in place of legal and/or financial counsel.