What Happens To Credit Score After Bankruptcy?

Greetings Peter Parker,

Your credit score will take a major hit.

But with time you can rebuild it.
And since you are in a tough financial bind now.....it might actually improve after bk!

[LEFT]Why?

To start with, your credit report is largely wiped clean when you declare bankruptcy.

Your high balances are removed as are any late payments or records of unpaid debts.

Instead, the accounts included in the bankruptcy will be marked as "Included in Chapter 7 Bankruptcy" or "Included in Chapter 13 Wage Earner Plan," depending on which type of bankruptcy you filed.

Of course the bk remains on your credit report for 10 years.

And then the credit card companies mine the data from the bk lists.

The cycle begins again.
Offers start appearing in your mailbox.

Take my advice for what it's worth and throw them in the trashcan.

Hope this helps!
Regards,
King "Kash" Jabba Labba


[/LEFT]

To avoid the soliciations of cc after bk, you can go online and opt out. I think it's like optout.com or something. I did that years ago and my credit score went up like 20 points. Of course at that time I had impeccable credit.

As for your credit score after bk, King is right - it will plummet. But do you really want to get a cc after being in such a bad place? I know that I don't. All you need is to get a secured credit card from your bank or credit union. Use it occassionally and pay it off each month. This will help you reestablish credit.

You will be able to get a mortgage 3 years after your discharge date and car loans are available almost right away. The interest rate will be higher, but you will have wheels.

but before you file bk, consider settling with the cc companies for less than is owed. Read up through this forum and you will find a lot of us have done it ourselves successfully and have avoided bk.