Does filling for bankruptcy effect your credit score?

Answer 1

I filed bankrupcy november 05 and it was discharged feb 06. Since then i was able to get three credit cards and just bought a $16,000 Car. Of course since I made that large purchase my score went down a little bit but after I pay on it for a while it will go up. As long as you pay on everything on time, and DO NOT RUN IT TOO MUCH, you will be ok. I am living proof of it. I am actually in works of buying a house after I pay on my car for about six months. Also, when you do get your credit cards, try not to use over half your limit.

Answer 2

your credit score virtually has no meaning once there is a current bankruptcy in your credit history. creditors will not extend you credit so the actual score becomes a moot point.

a personal bankruptcy will hurt your for 7 years. I'm a mortgage broker and have been for over 10 years. I get people sub-prime loans 21 -days after their bankruptcy has been discharged, so there is light at the end of the tunnel.

if there is no way you can possible get yourself out of dept with your projected earnings from your current job in a couple of years then yes start thinking about filling...the sooner you get that 7 year clock ticking the better.

Answer 3

Yes it does. Depending on what type of bankruptcy depends on how long it stays on your credit:
Chapter 7: purges 9 years and 9 months after date filed
Chapter 13: purges 6 years 9 months after date files
Chapter 11: purges 10 years after date filed.

Usually a bankruptcy within two years is what effects your credit score. After that its just what creditors will look at to determine whether or not to extend your credit. Contrary to popular belief you can buy a house while still having a bankruptcy on your credit report. I work eith my mortgage companies who do it. You may have to get an FHA loan instead of convential but its still possible.

Hope this helps.

Answer 4

Are you kidding me??? of course it does...if it didn't don't you think every person would want to buy a lot of stuff and then file for bankruptcy? Let's put it this way bankruptcy is something you never want to try....makes life a lot more difficult.

Also, bankruptcy can be on your credit for 10 years!!!. And to improve your scores can take forever...no creditor will want to touch you because of it...and if you try finding an apartment some landlords will refuse to let you become a tenant.

Answer 5

Of course it does. You need to contact 3 good bk attorneys. Work out a budget and then figure out what your options are. If you Bk, make sure to keep some creditors and pay those accounts on time (in other words dont BK all of your debts). This will allow you to rebuild your credit very quickly. This ia called reaffirmation. Dont let any Bk attorney do your bk without doing this step.

Answer 6

As long as your dad does not include the car in the bankruptcy it should not effect your credit.

Answer 7

yes. It should only be used as a last resort since it is the most negative thing you can do to your credit report.

Answer 8

yes but my relative filed and 6 months later they bought a house at 8.5% interest which was 2005

Answer 9

Affect it??? It will ruin it for 10 years,dont do it!!!!!