A good credit score shows that you are a responsible borrower who clears the loan amount on time. A good credit score is important for certain types of loans, including home loans. Borrowers who have missed payments or a lot of outstanding debts have a poor credit score.
Bankruptcy is a legal process which helps a person or business come out of outstanding debts that they can’t pay. The process begins when the debtor files a petition or sometimes, creditors also file a petition.