Jump to navigation Jump to content

What effect will filing for bankruptcy have on your credit score?

Blog Category:
Comments (0)
Often people who file bankruptcy wonder what will happen to their credit score after filing bankruptcy and have concerns about the balances on their accounts. The answer to this is the credit report will not show any balances on the accounts as the creditor can no longer report to the credit bureaus about the debt. However, the credit score will increase or decrease based on a number of factors and previous credit information. The major factors are:

   Credit card or loan repayment history
Ÿ   Amount of debt owed
Ÿ   Length of credit history
Credit history is based on credit card repayment and the debt owed on these cards. If someone had a high balance on the cards and bad payment history may have an increase in the credit score after filling bankruptcy. On the contrary, for many others the bankruptcy will decrease the credit score.
However there are many ways your credit score can be improved after filing bankruptcy. The most important is paying your mortgage payment or car payment on time as some of the creditors do report these payments to the credit bureau if the debt is been reaffirmed by bankruptcy filer. You may also choose to open new credit accounts or obtain the secured card or prepaid cards, which may require a security deposit and allow the cardholders to use the limited allowed money. This is reported to the credit bureau. Timely credit card payments will have a very positive effect on your credit score. 
There are many services available, by paying a minimal fee that monitor accounts after filing bankruptcy and dispute any incorrect information reported to the credit bureaus. They also correct discrepancies on the credit report.
Managing money wisely by monitoring interest and only using credit card when you can pay the balance in full each month will help you increase your credit score and become more financially secure.

Category: Bankruptcy

There are no comments.

Post a comment

Post a Comment to "What effect will filing for bankruptcy have on your credit score?"

To reply to this message, enter your reply in the box labeled "Message", hit "Post Message."


Email:* (will not be published)


Notify me of follow-up comments via email.

For Current Clients

Our Locations

St. Charles Office

1861 Sherman Drive
St Charles, MO 63303
Phone: 636-916-5400

At Hwy 94 and Hwy 70.

Get Directions | See Detail

St. Louis Office

3470 Hampton Ave, Suite 101
St. Louis, MO 63109
Phone: 314-353-0834

Close to the corner of Hampton Ave and Chippewa. By appointment only.

Get Directions | See Detail

South & Jefferson County office

7321 S. Lindbergh Ave., Suite 222
St. Louis, MO 63125
Phone: 636-916-5400

Across the South County Mall.

Get Directions | See Detail

Florissant Office (North County)

1281 Graham Rd, Suite 300
Florissant, MO 63031
Phone: 314-921-1880

At North Hanley and Hwy 270.

Get Directions | See Detail

Belleville Office (St. Clair county)

2 Park Place Professional Centre
Belleville, Illinois 62226
Phone: 618-977-9560

On Hwy 159, next to Schnucks.

Get Directions

Granite City Office (Madison County)

3600 Nameoki Rd, Suite 201
Granite City, IL 62040
Phone: 618-977-9560

Across Shop'n Save, by appointment only.

Get Directions | See Detail

Follow Us On