' How Does Bankruptcy Affect Your Credit? - Law Offices of Robert M. Geller
CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

How Will Bankruptcy Affect Your Credit Score?

Chances are if you have told anyone you are considering bankruptcy, you have received a variety of reactions. Many people understand how helpful bankruptcy can be, but others assume the worst and believe bankruptcy is never the right option. In most cases, these are people who have never faced financial hardship and needed assistance getting back on their feet.

One of the most common warnings you will likely hear about bankruptcy is that it will destroy your credit score. To some extent, this is true. However, what people fail to consider is that based on your current financial situation, your credit score has already taken a dramatic hit and will continue to fall if the problem is not remedied. Bankruptcy will impact your credit score, but it can also wipe the slate clean and give you an opportunity to begin rebuilding your score in the months and years following your filing.

Why is Your Credit Score Important?

Your credit score is used by companies to determine whether or not you are a good risk. This can apply to lending you money, but it might also pertain to employment opportunities. Protecting your credit score is important, but there are instances in which the hit bankruptcy causes is worth it to move forward.

Determining the exact amount bankruptcy will affect your score is nearly impossible because it varies from case to case. The worse your current score the less impact filing for bankruptcy has. The average person ends up with a credit score of around 500 following bankruptcy, so if your score is already in that area, bankruptcy will cause little change. Read more from My FICO about how bankruptcy affects your credit score.

The important thing to remember is the faster your bankruptcy is over the sooner you can move forward and begin rebuilding your credit. No matter how much of an impact bankruptcy has on your score, it will not last forever. For many people, working toward better credit is only possible with the bankruptcy.

What the Future Holds after Bankruptcy

Bankruptcy remains on your credit report for up to 10 years, but the longer the time that passes between filing and applying for loans, the less it matters. A person filing for bankruptcy at age 30 that maintains flawless credit over the next eight years is more likely to be approved for a loan than a person who never filed that has ongoing credit problems. The goal is to get through the bankruptcy process and create a brighter financial future. It is possible to have outstanding credit even if you filed for bankruptcy at one time.

Want to know more about how bankruptcy will affect you? Contact the Law Offices of Robert M. Geller at 813.254.5696 to schedule your consultation.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Are Trusts Protected from Bankruptcy?

Trusts are powerful estate planning tools. They allow people to protect and distribute their assets according to their wishes. This...
Read More

The Truth About Bankruptcy and Buying a Car

The Truth About Bankruptcy and Buying a Car Bankruptcy often carries a stigma of financial ruin and a bleak future....
Read More

How Do Bankruptcy Lawyers Get Paid?

Bankruptcy can be a stressful and overwhelming experience, but having the right legal representation can make all the difference in...
Read More

Do You Lose Your Home When You File for Bankruptcy?

Filing for bankruptcy can be a daunting prospect, especially when it comes to concerns about losing one's home. Your home...
Read More

Can You File Bankruptcy During a Divorce?

Divorce and bankruptcy are personally difficult and also complex legal processes that can have significant implications for your financial future....
Read More

Can You File Bankruptcy on Restitution?

Facing financial struggles can be overwhelming, especially when debts include complex legal obligations like restitution. What is restitution and how...
Read More

Can You File Bankruptcy After a Judgment?

Receiving a judgment against you in a lawsuit can be a distressing experience. This is especially true if you're already...
Read More

Can Back Taxes Be Included in Bankruptcy?

Dealing with back taxes can cause a lot of stress and financial burden for anyone facing financial hardship. If you're...
Read More

Can an Estate File for Bankruptcy?

Many people wonder whether or not an estate, such as the one left behind after someone passes away, can file...
Read More

How Long Should I Keep My Bankruptcy Discharge Papers?

If you've successfully navigated the bankruptcy process and received your discharge papers, congratulations are in order. It's a significant milestone...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions