If you have had nothing derogatory and have re-established some credit after the BK, then most Prime lenders will look past the BK and give you the published rates for a 720 score.
If you are surrendering your house anyways, it is usually better for your credit score if you do it through bankruptcy. If your house is foreclosed on before you file bankruptcy, then your credit score is hit by both the foreclosure and the bankruptcy. If you let your house go back through bankruptcy, instead, then your credit score is only hit by a bankruptcy.
A bankruptcy stays on your credit report for 10 years and you may have to answer about it for the rest of your life. Who knows what effect it has on your credit score? Companies that lend money. Only when you apply for credit after bankruptcy will you know the full detrimental effect.
will bankruptcy increase you credit score over time
It will only affect the non-filing spouse if the couple apply for some type of joint credit, such as a home mortgage. It will not affect the new spouse's credit report/score.
If your co-signer has declared bankruptcy but you have not and are current on your payments it will affect your credit until the original loan is paid off regardless of what state you are in. Once that loan is paid off and your connection to the other persons credit is severed you will operate on your own credit score.
The cosigner's credit will only be affected if the person that they cosign for defaults on the loan. The bankruptcy will not affect the cosigners credit.
bankruptcy will affect you as long as it is reporting on your reports until the SOL runs. Once it is gone from your reports you will see a positive change in your score. Remember just because it is not reporting it still may affect you in some way due to the fact that it is a court ruling and is public information.Bankruptcy typically stays on your credit report for 10 years.
The fact of filing bankruptcy is already going to lower your credit score, and the point of bankruptcy, part of it anyway, is to resolve unpayable debt such as collection accounts. It is in your best interest to add the collection accounts to your bankruptcy, but if you consult your BK attorney, he is likely to advise you of this. The bankruptcy is the first next step in repairing your credit and improving your credit score.
Were you looking for a specific number? It depends on ALL of the other items on your credit report and their relation to one another. Even one small piece of information can affect your score and the way the risk indicators factor against one another. Generally speaking, derogatory information that is more than 12 months old begins to affect your score less and less. For a seven year post-discharge bankruptcy, you need to look at all the other factors that can affect your score. Do you have positive on-going credit? What is your proportion of debt to available credit on revolving accounts? What types of credit are you using? Are you limiting and controling inquiries into your credit? And most importantly, are you paying all of your credit bills on time? If you did not establish positive credit after your bankruptcy, THAT could be affecting your current score much more so than any 7-year-old legal item. Not much to make a difference.
Keep in mind that a bankruptcy will affect your credit score. What you must do now is add good credit e.g. secure credit cards and maybe a secure loan will increase your credit score within 2 years. Your credit scrore primarily judge consumers on what they have done within the last two years. If you add good credit, your score will increase.
After your discharge, you can purchase a home at any time. If you pay cash, you may have some serious problems explaining where the money came from and why it was not reported in the bankruptcy documents. If you apply to borrow, you will have trouble qualifying for a mortgage, since credit score will be low, due to the bankruptcy and the poor credit you had prior to filing. You will have to be serious about repairing your credit score, and it will take 3-4 years for you to do that.
As with everything, bankruptcy law can be complicated and the manner by which credit ratings occur can seem mysterious at best. Filing for bankruptcy will in general lower your credit score, but with some good spending habits and good financial stewardship will again rise over time, especially since part of your credit score has to do with income to debt ratio. When you file for bankruptcy, the debts do not simply disappear as if they never existed. Your history of late or missed payments, if you have one, will remain on your credit report and will continue to drag down your credit score. Additionally, the bankruptcy will stay on your record for many years. A Chapter 7 bankruptcy will remain on your credit report for 10 years from the date of the filing