Inevitably, filing for bankruptcy will have your credit score lowered. And rebuilding your credit after a negative event, such as bankruptcy, can take some time. However, this is not to say that it cannot be done. Follow along to find out what credit score you will start with after your bankruptcy filing and how a proficient Rockland County bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq., can guide you toward improving it.
What will my credit score be after bankruptcy?
Data has shown that, on average, a credit score after bankruptcy is around 530. With this, data has shown that, on average, a credit score will drop around 150 to 240 points after bankruptcy.
However, there is no specific answer for what your credit score will be after bankruptcy, as it will ultimately depend on several contributing factors. For example, the number of accounts you have open and the amount of debt you claimed in your bankruptcy filing will affect your score.
How soon will my credit score improve after bankruptcy?
Notably, how soon your credit score will improve after bankruptcy will largely depend on what type of bankruptcy you filed. This is because different types of bankruptcy will stay on your credit report for different amounts of time. Examples of such are as follows:
- A discharged Chapter 13 bankruptcy: this may remain on your credit report for around seven years from the date of your filing.
- A non-discharged Chapter 13 bankruptcy: this may remain on your credit report for around 10 years from the date of your filing.
- A Chapter 7 bankruptcy: this may remain on your credit report for around 10 years from the date of your filing.
With that being said, you may not see your credit score reach the level it was before your filing until your bankruptcy record is removed from your credit report. But on average, data has shown that it can take around one month to two years for your score to go back to normal.
How can I improve my credit after bankruptcy?
Overall, if you maintain positive habits for the year following your bankruptcy filing, you may be able to bring your score to the “fair” range. Below is an example of one approach you may be able to take to rebuild your credit:
- After completing the bankruptcy process, apply for and open a new secured credit card.
- Use your new secured credit card in a responsible manner.
- Pay off your new secured credit card in a timely manner.
- Within a month, monitor your credit score to check for any improvements.
If you want more ways to improve your credit, do not hesitate in consulting with a talented Rockland County bankruptcy attorney. Call us today.