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How does filing chapter 7 affect your credit?

Answer

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Wiki User
05/12/2007

Generally a bankruptcy filing (Chapter 7 or Chapter 13) reduces your credit score by around 75 to 150 points. There is no exact amount since how credit reporting agencies determine your credit score is a big industry secret, but a 75 to 150 point drop is what you can expect. So, this means you usually need to wait 12 to 15 months after filing bankruptcy to get a car loan and 2 years after filing to get a mortgage (though of course other factors affect this too, such as length of employment, income amount, debt-to-income ratio, post-bankruptcy credit acquisition, etc). Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts and law, which I do not warrant, and I am not suggesting any course of action or inaction to any person. Speak to a lawyer for specific advice. If you have any questions, please refer to a lawyer in your jurisdiction. Thanks!