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Last year you filed for bankruptcy. This was the result of not being able to pay your bills. Based on this bankruptcy,how will your credit score be impacted? Choose 1 answer: A Your credit score will be negatively impacted. B Your credit score will be positively impacted. C There will be no impact on your credit score.

Question

Last year you filed for bankruptcy. This was the result of not being able to
pay your bills.
Based on this bankruptcy,how will your credit score be impacted?
Choose 1 answer:
A Your credit score will be negatively impacted.
B Your credit score will be positively impacted.
C There will be no impact on your credit score.

Last year you filed for bankruptcy. This was the result of not being able to pay your bills. Based on this bankruptcy,how will your credit score be impacted? Choose 1 answer: A Your credit score will be negatively impacted. B Your credit score will be positively impacted. C There will be no impact on your credit score.

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EvelynProfessional · Tutor for 6 years

Answer

### A. Your credit score will be negatively impacted.

Explain

## Step 1: Understanding Credit Scores<br />### Credit scores are numerical expressions based on an analysis of a person's credit files, representing their creditworthiness. They are primarily based on credit report information sourced from credit bureaus.<br /><br />## Step 2: Impact of Bankruptcy on Credit Scores<br />### Bankruptcy is a legal process that can severely impact a person's credit score. It is considered a negative mark on a credit report.<br /><br />## Step 3: Duration of Bankruptcy on Credit Report<br />### Bankruptcy filings typically stay on a credit report for seven to ten years, affecting the borrower's ability to obtain new credit during this period.<br /><br />## Step 4: General Impact of Bankruptcy<br />### Generally, bankruptcy significantly lowers a person's credit score as it indicates to lenders that the debtor has been legally declared incapable of paying off their existing debts.
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