Filing for bankruptcy can have a significant impact on your credit score. The exact impact on your credit score will depend on several factors, including your credit history, the type of bankruptcy you file, and the scoring model used by the credit bureaus.
In general, a bankruptcy filing can lower your credit score, sometimes by a significant amount. For example, a Chapter 7 bankruptcy can lower your credit score by 200 to 240 points or more, depending on your credit history. A Chapter 13 bankruptcy can lower your credit score by less, often by around 100 to 160 points.
However, it’s important to keep in mind that the impact of bankruptcy on your credit score is not permanent. After the bankruptcy is completed, you can start to rebuild your credit score by making on-time payments, managing your debt wisely, and avoiding new debt.
It’s also worth noting that a bankruptcy filing can provide a fresh start and help you get back on solid financial footing. In many cases, people who have filed for bankruptcy have a better financial future and a higher credit score within a few years after the bankruptcy is completed.
It’s always a good idea to review your credit report regularly and dispute any errors or inaccuracies you may find.