05 Feb 2020

So you’ve decided to file a bankruptcy petition but are concerned about how it will influence your credit score. Here’s what happens to your credit after bankruptcy, and what you can do about it.

You should also consider what NOT filing will do to your credit.  If you are behind on bills due to divorce, medical catastrophe, or job loss, your credit score has already taken a hit due to delinquent accounts. You might be facing foreclosure or car repossession, and these also affect your credit negatively. It may just be that the credit ramifications of NOT filing bankruptcy are more severe and long-lasting than filing bankruptcy, resolving your financial issues, and getting a fresh start. 

The fact that you filed a personal bankruptcy case can remain on your credit report for up to ten (10) years.  That being said, the type of bankruptcy you filed, why you filed bankruptcy, whether you completed your Chapter 13 plan, and whether you received a discharge will all factor into your credit score, as will your post-bankruptcy financial behavior.

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