Does bankruptcy hurt your credit? 26 Answers as of June 08, 2011

How bad does a chapter 7 hurt the credit? Does it hurt it forever?

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Jackson White, PC
Jackson White, PC | Spencer Hale
Bankruptcy will hurt your credit. There is not a set amount of points that will drop from your score, but it will drop. The good news is that your score will rebound. I have many clients whose scores are higher a year after filing than it was prior to filing.
Answer Applies to: Arizona
Replied: 6/7/2011
Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
Filing BK will adversely affect your credit. However, it will only be on your credit report for 7-10yrs.
Answer Applies to: Washington
Replied: 6/7/2011
Burnham & Associates
Burnham & Associates | Stephanie K. Burnham
Once you file Bankruptcy, it will remain on your credit report for seven (7) years. It can be a factor that Creditors consider when determining whether or not they want to loan you money. Once you are past the seven (7) year mark, the Bankruptcy will no longer be reported on your Credit Report.
Answer Applies to: New Hampshire
Replied: 6/8/2011
Daniel Hoarfrost, Attorney at Law
Daniel Hoarfrost, Attorney at Law | Daniel Hoarfrost
A bankruptcy stays on your credit report for 10 years.If you are in difficult enough straits that bankruptcy seems like a viable option, then your credit rating is probably not something you should be losing sleep over.
Answer Applies to: Oregon
Replied: 6/7/2011
The Northwest Debt Relief Law Firm
The Northwest Debt Relief Law Firm | Thomas A McAvity
It does not hurt your credit forever. We see many of your clients bounce back to 700 plus credit scores within two years of filing chapter 7 bankruptcy.
Answer Applies to: Oregon
Replied: 6/7/2011
    Bird & VanDyke, Inc.
    Bird & VanDyke, Inc. | David VanDyke
    Yes bk will hurt your credit, but most people will have decent credit scores within1 to 2 years after filing a bk. It is hard to tell how it effects credit in any given situation but if you have not been paying your debts or you are at a point where you can't continue paying them then bk may actually help your credit over the long run.
    Answer Applies to: California
    Replied: 6/7/2011
    Indianapolis Bankruptcy Law Office of Eric C. Lewis
    Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
    This is a common misconception. If you are filing for bankruptcy relief, then your credit is already ruined or soon will be. Bankruptcy puts one in a position to start rebuilding fresh, and will show up on your credit reports for the next 8 to 10 years.
    Answer Applies to: Indiana
    Replied: 6/7/2011
    Law Office of Jackie Robert Geller
    Law Office of Jackie Robert Geller | Jackie Robert Geller
    Usually, someone considering bankruptcy already has damaged credit (late payments, repossessions, etc) so filing a bankruptcy to discharge debts will actually help in the long run. By discharging debts, a person's debt to income ratio improves which may eventually improve a credit score.
    Answer Applies to: California
    Replied: 6/7/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    Bankruptcy stays on your credit report for a long time for ten years. Some creditors will loan money in spite of a bankruptcy, but may charge higher rates of interest. It is important after bankruptcy to pay all debts on time to improve credit.
    Answer Applies to: California
    Replied: 6/7/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    In many if not most cases a chapter 7 improves ones credit score as it zeros balances (be sure your report is updated). The case itself stays on your credit report for 10 years. Most people are able to buy homes and cars on credit far sooner.
    Answer Applies to: Georgia
    Replied: 6/7/2011
    Law Offices of John J. Ferry, Jr.
    Law Offices of John J. Ferry, Jr. | John J. Ferry, Jr.
    A bankruptcy will be on your credit report for ten years. However, you should keep in mind that unpaid or late payments show on your report for seven years, so chances are if you are looking at bankruptcy your credit is probably already shot. Some creditors are more likely to lend to you after a bankruptcy since they know you can't file again and get your debts discharged for eight years. (My standard advice: Once those credit card offers start coming in after your bankruptcy is concluded, throw them out!!)
    Answer Applies to: Pennsylvania
    Replied: 6/7/2011
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    If you are asking about bankruptcy your credit is already bad.... It can only go up from there. It does stay on your record for 10 years but that does not mean you can't buy anything for 10 years. It all depends on your income and what you do post petition.
    Answer Applies to: California
    Replied: 6/6/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    It depends on your credit now. If you have horrible credit now then it will probably get better after getting a bankruptcy discharge because you will have no debts for credit cards and other unsecured debts. If you have good credit now then it will not be good after you file for bankruptcy until you rebuild your credit over the next 2 to 5 years. A Chapter 7 case stays in your credit report for 10 years. If your credit is now so so then it will probably not change much after you file for bankruptcy but you will have the opportunity to improve it in the course of a few years and have excellent credit again. It is hard to tell because it depends on your own situation.
    Answer Applies to: California
    Replied: 6/6/2011
    Law Office of Maureen O' Malley
    Law Office of Maureen O' Malley | Maureen O'Malley
    It depends on how your credit is before you file. If it's already bad, it probably won't particularly hurt it. It takes a ding, then improves progressively as long as you take on no new debt. It stays on your credit report for 10 years, but doesn't really hurt for that long. Some of my clients have bought a house within 2 years of filing.
    Answer Applies to: Virginia
    Replied: 6/6/2011
    Symmes Law Group, PLLC
    Symmes Law Group, PLLC | Richard James Symmes
    A chapter 7 bankruptcy case stays on your credit report for 10 years. You may start rebuilding your credit immediately after filing for bankruptcy, and for some people, filing bankruptcy may also help improve your credit as after discharging your debt you are now able to pay your post filing debt.
    Answer Applies to: Washington
    Replied: 6/6/2011
    The Law Office of Mark J. Markus
    The Law Office of Mark J. Markus | Mark Markus
    That depends on what your credit is like before you file. In many cases it improves your credit. It stays on your credit report for up to 10 years, but you can start rebuilding your credit immediately.
    Answer Applies to: California
    Replied: 6/6/2011
    Law Office of L. Paul Zahn
    Law Office of L. Paul Zahn | Paul Zahn
    Any bankruptcy filing will drop your score for a time, but if you are filing for bankruptcy, your score is likely already bad. As you rebuild your credit after the discharge, your score will improve. If you are in my area and are looking to file for bankruptcy, please contact me for a free consultation.
    Answer Applies to: California
    Replied: 6/6/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    It stays on your credit report for 10 years. It drops your credit score by 200-250 points. However, some credit cards are sending out approvals within 6 months of discharge, I assume believing that since you cannot file again for 4 to 8 years, they have time to get you to to pay if you default.
    Answer Applies to: California
    Replied: 6/6/2011
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    It will hurt your credit for several years.
    Answer Applies to: California
    Replied: 6/6/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    It usually helps your credit as much as 50-100 points within 12 months of filing.
    Answer Applies to: California
    Replied: 6/6/2011
    Law Office of Eric Ridley
    Law Office of Eric Ridley | Eric Ridley
    Your credit will report a bankruptcy for ten years. While it is damaging to your credit, the damage is not permanent, and will gradually get better.
    Answer Applies to: California
    Replied: 6/6/2011
    Uriarte & Wood, Attorneys at Law
    Uriarte & Wood, Attorneys at Law | Robert G. Uriarte
    Bankruptcy is reported on your credit report for 10 years, however if you are diligent and rebuild your credit after discharge, you may be able to establish a high FICO score within18 months to two years. notwithstanding the reporting of the bankruptcy. Talk to your lawyer and find out how best to accomplish this after your discharge.
    Answer Applies to: California
    Replied: 6/6/2011
    Dearbonn Law Offices
    Dearbonn Law Offices | Ajibola Oluyemisi Oladapo
    Yes, bankruptcy hurts your credit and stays on your record for 10 years.
    Answer Applies to: Washington
    Replied: 6/6/2011
    Law Offices of Joseph A. Mannis
    Law Offices of Joseph A. Mannis | Todd Mannis
    By the time you decide to file bankruptcy, your credit is already damaged, maxed out, or both. Or about to be. So, how could bankruptcy possibly hurt it? Bankruptcy actually helps you rebuild your credit. Why? Bankruptcy gives you a point at which you can start over and thereby rebuild your credit. In other words, you can't start to rebuild unless you get to that starting point. If you do nothing, things will either stay the same or get worse. Short of winning the lottery, you will never be able to rebuild your credit, so the bankruptcy is actually a good thing.
    Answer Applies to: California
    Replied: 6/6/2011
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