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How will a bankruptcy effect your credit score?

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2010-09-09 20:14:17
2010-09-09 20:14:17

will bankruptcy increase you credit score over time

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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.

First off once you file bankruptcy you cannot do it again for 7 years. Bankruptcy stays on your credit report for 10 years. Rather to try to describe what the different types of bankruptcy will do to your credit click the link for more information.

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.

No, a credit score is compiled from a consumer's complete credit history.

No - a corporate BK does not effect you personally (except maybe as an investor/stockholder).

Bankruptcy will always be on your credit scoring record. After the bankruptcy is discharged it will have a less negative effect, and then after 6 years it is supposed to be considered done with and you get get a mortgage, loans etc. However, having a bankruptcy on your record will always have some negative effect even after the 6 years are up. Bankruptcies are maintained on a credit report for at least 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.

The bankruptcy will appear on their credit if you include this card in your bankruptcy. If you leave the card off the bankruptcy, it will not effect their credit.

A short sale will effect your credit score in a negative way. Your credit score will stay on your credit report for some years.

Yes, a Bankruptcy is one of the most damaging accounts which can show up on a credit report. The good news is that after 2 years, the account doesn't impact your credit score as much. Once it is deleted, your credit score is improved.

How many points your credit score will go up after bankruptcy comes off, will depend on where it was beforehand. Your credit score may improve drastically into the 600's, or it may still be low.

Yes. It is more difficult, but it is also ESSENTIAL to recovering from bankruptcy. You must take out credit and have precise, on time payments in order to help rebuild your damaged credit score post bankruptcy.

Yes, but only after the bankruptcy is removed from your credit report - which can take over ten years from the discharge.

bankruptcy will effect for your credit for an average of 7 years..consider it a way of purging the bad and being flagged for "high risk" until your prove yourself again

The conventional credit score is only affected by your borrowing activities - i.e loans, credit cards etc. Bills such as hospital bills will have no effect unless you declare bankruptcy. There are other types of "creditworthiness" scores that are becoming commonly used. These do take into effect other factors and are generally not released to the public. So delinquency is paying bills can affect your ability to get credit even though the usual "credit score" will remain unchanged.

After 7 years, you can start rebuilding your credit.

The credit score can effect mortgage rates in a lot of differnt ways. If someone has a high credit score he get a lower mortgage rate and if someone has a low credit score he gets a higher mortgage rate.

More than likely if you file for bankruptcy your credit score will go down. They report the filings for up to seven years and sometimes ten.

Bill consolidation is a better alternative to bankruptcy. Bankuptcy will go on your credit and has stipulations to being accepted. Bill consolidation will give you a chance to pay off your debts without an adverse effect to your credit score.

It depends on what your credit score was before your filed bankruptcy. If your credit score was low before your filed bankruptcy, then after your bankruptcy is discharged, if you send a copy of your Schedules and Discharges records to all three credit bureaus; Trans Union, Experian and Equifax and ask them to zero out all the past due balances now that you do not owe them anymore then your credit score will more than likely be higher than before you filed. Also, your bankruptcy filing is picked up under the Public Records section of your credit report, however, after 12 months the scoring models do not pick up the bankruptcy anymore so it does not effect your score. It is visible on your report for 10 years after a chapter 7 and 7 years after a chapter 13, but not in your score. It is a good idea to open up an account after your bankruptcy discharges so your scores will continue to go up. If you open a credit card, just make sure you do not go over 30% of the limit, and pay it off every month. You can go to http://www.bankruptcy-records.us/Credit_Restoration.html for step by step instructions on how to handle your credit after a bankruptcy.

That depends on, what's on your credit bureau file. The score will look at the age of your credit cards, balances and payment history

if someone looks into your credit report, yes it will effect your credit score. it will reduce between 3-10 points.

Most likely, yes. One of the biggest effects that filing for bankruptcy has is on your credit. Bankruptcy will stay with your credit for roughly 10 years and because of that your score will decrease, at least initially.

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.

No, filing bankruptcy will never help improve your credit score, it stays on your report 10 years whereas a repo or foreclosure normally remain 7 years. So bankruptcy would only make your credit worse.


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