Bankruptcy and your credit score are two interconnected things. If you end up filing for any type of bankruptcy, it is highly likely to affect your credit score for around 7 to 10 years to come.
In this article, we will try to answer some of the most frequently asked questions about bankruptcy and credit score. Keep in mind that picking a bankruptcy lawyer is the best thing you can do when filing for bankruptcy.
The Effect of Bankruptcy on My Credit Score
If you are thinking of filing a bankruptcy, odds are, like many people, you have waited too long to file for bankruptcy and are now about to lag behind on debt repayments. In this case, filing for bankruptcy as soon as possible will help you save your credit score from getting severely damaged. But if you do not file for bankruptcy and keep delaying the payments, your credit score will certainly be damaged.
When Will I Get Rid of Bankruptcy From My Credit Report?
The amount of time a bankruptcy stays on your credit report depends on its type. For example, you can expect a chapter 13 bankruptcy to last on your credit report for at least 7 years, and a chapter 7 bankruptcy to last for about 10 years.
The number of years are calculated after the filing date of your bankruptcy. So, starting soon will help you get rid of the bankruptcy sooner.
Will I Have Credit After Bankruptcy?
The short answer to this is, yes, you can get credit after you are done with bankruptcy. In fact, you’ll get many offers from lenders and credit card providers after a short period of you filing for bankruptcy.
However, these offers usually have high interest rates, strict rules and other such things attached to them. Therefore, you should start rebuilding your credit score to get good offers.