After you are finished with your bankruptcy proceedings, you must anticipate that your credit score will be significantly lowered. With this, it may take a while to build back up. Follow along to find out what your score will be after bankruptcy and how a proficient Rockland County bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq. can help you through this difficult time.
What will my credit score start as after bankruptcy?
Studies have shown that an individual’s credit score tends to linger around the 530 mark after their bankruptcy proceedings. Or, an individual’s credit score may drop anywhere between 150 to 240 points after their bankruptcy proceedings. Overall, the higher your credit score is before your bankruptcy filing, the more it will affect your credit score after your bankruptcy filing. Specific examples are as follows:
- A score anywhere between 800 to 850: an average drop of 200 points.
- A score anywhere between 740 to 799: an average drop of 200 points.
- A score anywhere between 670 to 739: an average drop of 200 points.
- A score anywhere between 580 to 669: an average drop of anywhere between 130 to 150 points.
- A score anywhere between 300 to 579: an average drop of anywhere between 130 to 150 points.
But the bottom line is that there is no specific calculation for determining what your credit score will start as after bankruptcy. Rather, several factors will play a hand in this, such as the following:
- The number of accounts you have open before and after your bankruptcy filing.
- The amount of debt you claimed in your bankruptcy filing.
- Whether you filed for a discharged or non-discharged Chapter 13 bankruptcy, or otherwise a Chapter 7 bankruptcy.
What are ways to improve my score?
Once you have recovered from your bankruptcy proceedings, it may be in your best interest to request a secured credit card. Usually, you may open a secured credit card through a cash deposit or personal loan. This card can be used to make small essential purchases that you will be easily able to keep up with.
All the while, if you have any other credit cards still open, you should work toward paying off at least 70 percent of your credit limit each month. Importantly, you should not open up any more credit cards. At the very least, you should only open up one new credit card every six months if you believe you can afford to do so.
Hopefully, by following these steps, you may be able to see an improvement in your credit score within the next 12 months. We understand just how difficult the bankruptcy process can be, and having to deal with your credit score afterward makes it all the more stressful. This is why we recommend that you reach out to a talented Rockland County bankruptcy attorney as soon as possible. We look forward to collaborating with you.