Credit Reports and Bankruptcy
If you’re planning on filing bankruptcy and have stopped paying your credit cards, here are a few things to consider. First of all, delinquent credit card payments will damage your credit. This concern may sound stupid if you’re thinking about filing chapter 7 bankruptcy, but realize that credit reports document history. A bankruptcy will damage your credit, but a Bankruptcy and several months of delinquency will damage it even more. Anyone looking at your credit file after bankruptcy will see both the delinquent payments and the bankruptcy, which will make recovery even more difficult. Based on this information, it’s probably best to continue paying up until the bankruptcy is filed.
