How soon will my credit score improve after bankruptcy?

Filing for bankruptcy can be stressful for anyone. Depending on the type of bankruptcy you file, it can stay on your credit report for between 7-10 years. With a Chapter 7 bankruptcy, you don’t repay any of the debt owed, while a Chapter 13 bankruptcy requires you to pay back a portion of the debt through a repayment plan. This cannot be removed unless it is an error in your credit report.

When you file for bankruptcy your credit score can drop between 130-200 points, depending on your current score. The higher your credit score, the greater the drop. However, it is often the best option for some to get rid of a majority of their debt. If you are thinking of filing for bankruptcy, contact a trusted lawyer.

The good news is that you don’t have to wait 7-10 years until the bankruptcy is removed from your credit files to rebuild your credit score. After you receive your final bankruptcy discharge, you can begin to take steps to rebuild your credit. Lawyers recommend you wait until 30 days after you receive the final discharge (the time taken to get the discharge depends on the kind of bankruptcy filed) to start rebuilding your credit.

Begin by requesting your free credit reports from the major credit bureaus and check their accuracy. Any errors in the report can be disputed, potentially improving your score. You should also open a new credit line and strategize how you’ll use it to make sure your payments will be on time (or even early) to avoid any negative effect on your credit score. Getting a secured credit card, which requires a security deposit to open an account, is a great option when you’re considered a high-risk borrower.

If you have any remaining debts, like student loans, make a plan to repay them on time or early.

Getting a secured credit card, which requires a security deposit to open an account, is a great option to start rebuilding your credit score when you’re considered a high-risk borrower.

The difference between building your credit score with or without bankruptcy is that bankruptcy stays on your credit report for a long time and many lenders may refuse to approve any loans or credit cards you apply for. But the steps needed to improve your credit score after bankruptcy are similar to how you would plan to improve your score without the bankruptcy record.