How Soon Will My Credit Score Improve After Bankruptcy


One overpowering thought that rings on your mind after having a bankruptcy are how soon you can get it off your credit report. To file bankruptcy doesn’t mark the end of your world. In fact, for most individuals, it’s the beginning of a brighter future that will assist them finally attain their financial goals.

While bankruptcy is the first step when it comes to re-building good credit, you cannot simply file a case and expect noteworthy progress. You will work on it, the process demands your attention and it will be done with time.

How long can bankruptcy exist on my credit report?

The answer to this question depends on the type of filed bankruptcy. And basically, there are two main forms of bankruptcy.

Under chapter 13 bankruptcy, someone arranges to repay some or all the debt under the protection of bankruptcy court. This generally calls for a term not exceeding five years. After the repayment plan is completed, the debts included in the plan might be eligible to be discharged. A finished Chapter 13 bankruptcy, as well as the included in accounts, disappears from the credit reports 7 years from the filing date. Accounts considered delinquent before the filing of bankruptcy may be eliminated from your reports sooner. With Chapter 13 you normally accept to repay at least some of your existing debt – this makes it more favourable than Chapter 7 bankruptcy.

Under chapter 7 bankruptcy, someone waits for a full 10 years for the derogatory mark to entirely drop off your credit report. Thereafter, the debts will be discharged immediately. Chapter 7 accounts also fall off your credit reports 7 years from the date you filed.

Can I really get credit right after bankruptcy?

Back in the days, you could not get credit right after bankruptcy filing – it’s no longer the case. The bankruptcy’s impact on your credit diminishes over time meaning that the credit scores start to recover even when the bankruptcy exists on your credit reports.

In fact, there are credit card companies that cater to individuals who recently filed for bankruptcy. These companies offer such folks secured lines and/or unsecured lines for relatively small amounts – about $500 or $1,000 – but with very high fees and interest rates. NowLoan can help you determine the right type of loan (and also lender) for you after bankruptcy very quickly.

The bigger picture!

In order to improve your credit score after bankruptcy;

– Pay your ongoing obligations or bills in full and on time
– Consider using a secured credit card
– Consider employing other types of credit
– Avoid credit repair agencies

It’s just a matter of time and patience

Eventually, all the negative information on your credit report will drop off – but that is a one-step re-establishing your credit. In the second step, you must fill your credit report with “healthy” information. Remember that the more accounts added the faster those negative entries are replaced with positive ones thus the higher your credit score rises. And never ever borrow more than what you can afford to avoid another debt spiral!