What Will Happen to My Credit Score After a Bankruptcy?

Are you struggling to make credit card payments and drowning in a sea of debt?

If you are, you should be aware that a Chapter 7 bankruptcy allows people to discharge unsecured debts like medical bills and credit card debt. Meaning, if you have huge amounts of debt on your cards, you could potentially get rid of it in just a few short months.

It should also be noted that filing for bankruptcy generates an automatic stay, which stops collection attempts, meaning you will receive no more harassment from collectors if you are behind on payments.

Recently, a person wrote in to Fox News to ask columnist Erica Sandberg what types of credit cards he would qualify for, since he filed for bankruptcy in the past. Sandberg told the questioner that some companies would cautiously welcome him back.

“Credit issuers — from banks and credit unions to credit card companies — typically offer a wide variety of credit products to consumers,” Sandberg wrote. “Some are for people with excellent credit, others for those who have un-established or damaged credit. So, it’s not so much the specific company you ought to pursue, but which type of card.”

Sandberg then told the man that he should check his credit score to see what types of cards he may qualify for, and check for ones with the best interest rates and rewards.

Can I Still Obtain Credit Following a Bankruptcy?

Indeed, it is possible to rebuild your credit following bankruptcy. We recommend clients do this through the following means:

  • Getting a secured credit card
  • Opening an account with a large bank
  • Paying your current expenses on time
  • Cleaning up your credit reports by looking for errors

Remember, there is a limited amount of time that negative marks can stay on your credit history. In many cases, the ability to escape insurmountable debt overshadows the blow that a person’s credit score may take in the short term following a bankruptcy.

If you have any questions about bankruptcy and how it could influence your credit score, contact our Washington DC and Maryland bankruptcy lawyer now for a free consultation.

Law Firm of Kevin D. Judd – Maryland and Washington DC bankruptcy attorney

Judd’s Judgment: A bankruptcy can remain on your credit report for as long as 10 years, but your scores can continue to improve following a filing.

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