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What Happens to My Credit Score When I File for Bankruptcy?


At Law Office of Seni Popat, P.C., we understand that deciding to file for bankruptcy can be a difficult decision. That is why our experienced lawyers are here to walk you through each step of the bankruptcy process so that you can feel confident knowing your best interests are represented. Often, clients are hesitant to file bankruptcy because they are worried about what it will do to their credit rating. Our lawyers explain what happens to your credit score and what you can do to rebuild your credit rating if you end up filing for bankruptcy.

How Long Does Bankruptcy Stay on My Credit Report?

Under the Fair Credit Reporting Act, a Chapter 7 bankruptcy will stay on your credit report for at least 15 years. If you file for Chapter 13 bankruptcy, it will stay on your report for at least seven years from the date you file. However, it can also remain on your report for up to 15 years in certain situations.

Will My Credit Score Drop?

Your credit will take a hit when you file for bankruptcy. How much your score will drop varies depending on whether you have a high or low credit rating. A 700 score might plummet 200+ points while a 680 score might drop 150 points.

Can I Rebuild My Credit After Bankruptcy?

The impact of your bankruptcy will reduce over time as long as you don’t utilize too much credit after you file and responsibly manage any new debt you accumulate.

You should do the following to rebuild your credit after filing for bankruptcy:

  • Check the Report: Consult your credit report at least once a year to make sure all of the debts that were discharged in bankruptcy are correctly reported with a zero balance.
  • Open New Lines of Credit: A secured credit card or credit-builder loan are two options you can take advantage of to increase your rating. However, you need to make your payments on time and maintain a low level of debt for this to work.

Consult with Our Bankruptcy Lawyers in Queens Today

Are you ready to file for bankruptcy to eliminate your debts and get a fresh start on your finances? Then get in touch with our seasoned legal professionals at Law Office of Seni Popat, P.C to discuss your situation so we can determine the best course of action for you. We proudly represent clients throughout Queens, and we will gladly take a look at your case today.

Call us at (718) 340-3385 to set up your free case consultation with our legal team.