One of the biggest fears that people have about filing for bankruptcy is the potential impact to their credit score. Bankruptcy will affect your credit score, but it’s important to remember that this impact is only temporary, and it’s usually not as bad as people think it will be. For example, when someone with a low credit score files for bankruptcy, that bankruptcy can actually increase their credit score.
After your bankruptcy case is over, you can further help your score by showing the credit bureaus that you’re making smart, responsible moves with your money. Two ways you can do this is by applying for low-risk forms of credit and by paying your bills on time.
While a bankruptcy does stay on your credit report for 7-10 years, it does not necessarily impact your ability to get credit during that time. When a bankruptcy ends, it is very common for people to receive credit card offers immediately after the case completion. Or, people often get car loans immediately after – or sometimes during – a case.
At Burrow & Associates, we can walk you through your options so that you can make the best decision for you and your family concerning your bankruptcy and credit score. For any questions about bankruptcy and your credit score, please reach out and schedule a free consultation.