What bankruptcy does to your credit score

Posted Byphhlawfirm

When considering filing bankruptcy, you will also want to think about what it does to your credit score. Bankruptcy will affect your credit score, but it won’t necessarily ruin it. And, luckily, there are ways to repair your credit score after you file for bankruptcy. Below is what to expect after filing for bankruptcy:

 

  • Bankruptcy can cause your credit score to plummet

    • Declaring bankruptcy could have a negative impact on your credit score. However, if the effect is adverse, there's a good chance it won’t cause it to drop much more than it already has. The exact effect varies from case to case.

  • How long will it remain on your report?

    • Depending on your case, bankruptcy will stay on your report for 7-10 years. Chapter 7 bankruptcies will remain on your report for ten years. Other bankruptcy references usually will appear on your report for seven years. Including:

      • Chapter 13 cases

      • Any accounts included in a bankruptcy

      • Third-party collection debts, judgments and tax liens discharged through bankruptcy.

Although bankruptcy will remain on your report for 7-10 years, that doesn’t mean that it will affect your employment opportunities. And, you will have the ability to rebuild your credit score with those who have also filed for bankruptcy.

Posted by phhlawfirm