About 500,000 Americans file for personal bankruptcy relief each year, including a fair share here in Florida. With overwhelming credit card debt and medical bills, they take advantage of the one remedy that does not require a payment plan. The Chapter 7 Bankruptcy may be a dramatic help to those with heaping amounts of unsecured debt because the debt is erased permanently and quickly in the proceeding.
The one drawback, however, that many express about this powerful remedy is the negative effect that it has on one's credit score. A bankruptcy will make one's score plunge after the papers are filed. However, the plummet may be not so great if the consumer already is plagued by charge-offs and defaulted credit card accounts. At that point, there is nowhere to go but up.