How long will it take to repair my credit score after filing for bankruptcy?
That is a question that we are asked a lot, and we are pleased to answer that it takes less time that you probably think. We are also pleased to report that you also have a lot more control over your credit score than you probably realize.
First, some information on how bankruptcy affects you credit score.
As you already know, bankruptcy is viewed as a negative event on your credit history, and it will affect your credit score as long as it remains on your credit report. You can read more about the consequences of bankruptcy here.
A poor credit score can stand in the way of you qualifying for a home mortgage, auto loan or even an apartment. That’s why you are absolutely right to be conscious of the impact bankruptcy can have on it.
However, despite the negative consequences of bankruptcy, it is often the only option for people, and its benefits can greatly outweigh its drawbacks.
What most people don’t realize is that bankruptcy can affect people’s credit scores differently.
For example, when people already have a poor credit score before filing for bankruptcy, they typically don’t notice much of a difference after filing. On the other hand, a person who has a high credit score before they file will notice a much greater impact.
Because many people already have poor credit scores prior to filing, it is actually common to end up with better credit after bankruptcy. However, it is up to you to take the steps necessary to improve your credit score.
We will discuss how to do that in our next post.
