How Will a Bankruptcy Affect my Credit?

People often wonder how filing for bankruptcy will affect their long term credit. Some have the misconception that a bankruptcy will ruin their chances of ever having a good credit score. While it is true that a bankruptcy will stay on a credit report for ten years it is not the end for a person’s chances at having good credit.

In the short term a person’s credit might take a drastic hit after filing for bankruptcy. This depends on the credit score at the time of filing. The higher the score before filing the further it will fall. For example a person with a score of 680 before filing could see it fall to 550 while a person with a score of 780 could fall to 560. If a score is in the 500s or lower at the time of filing there may not be much change.

After the bankruptcy a person can begin to rebuild. Having a bankruptcy on your record will be a negative mark for some potential creditors. It may take some time after filing before a person is able to get a new loan. However, many people are surprised to find they are able to get car loans and new credit cards relatively quickly. The interest rates may be high and the credit limits low, but it is a start. By being careful and paying back any new debt on time a credit score can start to rebuild. While the bankruptcy may show up on a credit report for ten years a score can be repaired within a few years. The bankruptcy is a fresh start for people looking to build a secure financial future.


Bankruptcy timeline: Rebuilding credit

How to Rebuild Your Credit After Bankruptcy—Fast

Credit Report Q&A

Written by Hoglund Law

The attorneys of Hoglund law are licensed in Minnesota, Wisconsin and Ohio. Hoglund, Chwialkowski & Mrozik, PLLC is based in Roseville, Minnesota. In addition to handling cases involving bankruptcy & social security, Hoglund, Chwialkowski & Mrozik, PLLC handles faulty drugs and toxic exposure.

View all author posts →

Legal Blog Expert