How many points does a credit score drop when you file bankruptcy?

Question

what other impact does it have on credit?

Answer 1

There are some really silly answers here.

Nothing happens to your credit score when you file bankruptcy. Your credit score will start to decline when your creditors report that your debts are not being paid. The damage has probably already been done.

I've seen people come out of BK with 650+ credit scores.

You can qualify for a mortgage as soon as one day after discharge. Mortgage lenders completely disregard your BK after two years.

There is no advantage to you by filing Ch 13 instead of Ch 7. Your credit will be just as damaged and you'll be in hell making those payments for years. File Ch 7 and get it over with.


Rick Lanicek
www.homepropertysolutions.com

Answer 2

I totally agree with rlanicek, I filed bankruptcy last year and my credit score is in the mid 600's. It's been a year, and I have been approved for different credit lines (not too many), which has helped my credit score. Bankruptcy is not the worst thing to have on your credit report. You credit CAN recover from a bankruptcy!

Answer 3

I agree with Jeepguy....If you can afford to work out some type of payment plan, then definitely go that route. Filing bankruptcy is committing financial suicide. They tell you that it stays on your credit for 7 to 10 years but in actuallity, it can stay on indefinitely. With new laws that went into effect last year, banks can work around that 7 to10 year stipulation by using clever wording and phrases that meet the criteria of the law while at the same time screwing you for many more than 7 to 10 years, maybe even for life. It's a new era now...banks are calling all the shots and even influencing lawmakers to write or change the laws to suit them. It's the only legal way they have of making you pay for bailing out on them.

So, even if it takes you a few years to pay off what you now owe, at least you can take some satisfaction that within 5 to 7 years after you've paid all parties involved, all of those negative references like discharges, collections, delinquent, etc. WILL be removed from your profile without a doubt. No question about that.

Sometimes it pays to do the right thing and take the long route:)

Answer 4

For economic and credit concern i replaced into seek for thoughts at this internet site: FINANCE-thoughts.archives- RE 500 credit, guy or woman documents financial ruin, what's their score afterwards? a guy or woman has a poor credit historic previous, their score maintains to be all-time low we could say 500 after years of no longer even making use of credit, by way of fee-offs and judgments and that they can not even get credit. They finally record financial ruin to sparkling each and every little thing and start up over, does their score stay on the mark?

Answer 5

When you file bankruptcy you don't even need to worry about a stupid credit score for at least three years.

Answer 6

It is different for each case, depending on what chapter you file, your lawyer should be capable of answering, plus if you go on-line to experian.com they have links with information regarding credit scores, what affects them and how to rebuild you credit. Also rd.com has tons of financial info as well.

Answer 7

the bankruptcy will last on your public record for 10 YEARS , also for get about try to buy anything, car, house, credit card etc.....


click here for some info ~!


http://www.wiw.uscourts.gov/bankruptcy/Bankruptcy_Info.htm

Answer 8

i have heard from family members that has filed bankruptcy that you have to wait 7 years before you can get credit again...and some places it is hard if you have filed bankruptcy before...

Answer 9

It drops through the floor. you can expect about a 40-60% drop. If you can avoid it, then do, because it's about the worst thing next to a forclosure you can do to your credit.

Answer 10

I agree with Rick....I know a lady now who has a 725 (average/3) and she's 19 Month's out of a BK