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

Here’s How You Can Rebuild Your Credit

How do you repair this damage and rebuild your credit after filing for bankruptcy? Many people believe that filing for...
Read More

How Can You Practice Smart Credit Card Management after Bankruptcy?

How can you learn better credit card management after bankruptcy? Using credit after bankruptcy is an intimidating experience for many...
Read More

How Do You Improve Your Credit Score?

How do you improve your credit score? Here's what you need to know. Your credit score plays an important role...
Read More

Does Bankruptcy Credit Counseling Work?

Bankruptcy credit counseling helps you emerge from bankruptcy understanding credit management. People filing for bankruptcy must take two courses regarding...
Read More

5 Things That Boost Your Credit Score

Your credit score has a major impact on your financial life. You can be a great person with a bad...
Read More

How to Correct Errors on Your Credit Report after Bankruptcy

How do you deal with errors on your credit report after bankruptcy? In a perfect world, you could ignore your...
Read More

Tips for Rebuilding Your Credit after Bankruptcy

One of the primary goals after filing for bankruptcy is rebuilding your credit. As tempting as it might be to...
Read More

I’m Starting a New Life and I want a Financial Fresh Start – Should I File for Bankruptcy Now or Wait?

As the say goes, “when it rains it pours.” If you’ve found yourself experiencing financial difficulties while also dealing with...
Read More

What Does It Mean to Get a “Financial Fresh Start” in Bankruptcy?

Financial Fresh Start You’ve probably heard it before. “Bankruptcy gives you a financial fresh start.” It’s something stated on this...
Read More

Tips for Overcoming the Negative Emotions of Bankruptcy: How Can an Attorney Help Me with My Finances?

As advantageous as bankruptcy is when you are struggling financially, it’s still a stressful experience. Some people have a tough...
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

NACBA Logo avvo1 avvo2 avvo3 LEA BBB Logo RG Seal

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