What happens to my credit after bankruptcy ?


One of the most common questions I get from potential clients is how bankruptcy will affect their credit score. For many of my clients the answer is easy because after months or even years of non-payment, their credit cannot get any lower. In these cases bankruptcy can have a tremendous impact because it wipes out the old unpaid credit and gives the debtor a fresh start.

Where it get a little harder to answer is when the potential client has good or above average credit. In my experience, bankruptcy filers take a one time hit of approximately 75 points. The good news is this is a one time hit and for most filers, they begin to see significant jumps in their score soon after filing.

What can potential bankruptcy filers do to see what impact bankruptcy may have on their credit ? First, I have a program on my bankruptcy software that after pulling your credit report, can predict your credit score 12 months in the future. This score assumes that you will have filed for bankruptcy protection to wipe out your unsecured debts. By no means is this computer program perfect in predicting your score twelve months into the future, but it gives a glimpse into what your score can potentially get to. Next, set up a free consultation with me to see how you can do some simple things that can significantly impact your future credit score post bankruptcy filing.

- Stone Law Firm