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How Will Bankruptcy Effect Your Credit?

The main issue that discourages most people from filing bankruptcy is the detrimental effect is has on their credit. It's true that a bankruptcy can stay on your credit report for up to ten years and it seriously hurts your credit score. However, not filing for bankruptcy and allowing you debts to go to collections will also severely negatively impact your credit.


Note: One 90 day late payment will have the exact same effect on your credit score as a Bankruptcy. Also realize that when you claim Bankruptcy your debts will be wiped clean which will increase your credit score. Again here is the


TOP SECRET FICO Point System for Bankruptcy

Months Since Bankruptcy 0 (no bankruptcy) 75 points

Months Since Bankruptcy 0-5 10 points

Months Since Bankruptcy 6-11 15 points

Months Since Bankruptcy 12-23 25 points

Months Since Bankruptcy 24+ 55 points The primary remedy for this is time, though there are additional measures you can take to positively enhance your credit report and score. Ultimately, if you manage your new debts well, your score will Increase rapidly, and in time you will be able to run your financial life successfully, even if the bankruptcy has not yet dropped off your report.

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