subject: Will My Credit Score Ever Recover From A Bankruptcy Filing? [print this page] This question addresses two different concepts: how your bankruptcy will affect your credit and how long it will be reflected on your report. A bankruptcy filing could show up on your credit for up to ten years but the effect it has on your score may be more positive than you think
First, let's discuss the first concept: Will bankruptcy only affect your credit negatively? Your credit typically doesn't look too good by the time you are ready to file bankruptcy. By then, your credit score can't really be damaged much more. Bankruptcy, actually, does several good things for your credit.
- It wipes the slate clean. The growing debts that you were forced to carry weren't just a stress on you and your family--they were a stress on your credit score. After your discharge, the debts that were weighing down your score are zeroed out.
- It allows you to start rebuilding your credit. Debt is like a speeding train. It is nearly impossible to stop and what's left behind is damaged. Once you no longer live in fear of the threats of your creditors, you can start making the responsible decisions you wanted to make--like making payments on time.
Most of my clients have found that their credit score actually improves after a bankruptcy.
Now, the second question: How long will bankruptcy stay on my credit report? As I said before, legally it can be on there up to ten years. But are you really sure that an old bankruptcy filing on your history means something substantial? It certainly can't stop you from making good choices like reviewing your credit history and making sure everything is accurate.
In my experience as a St. Louis bankruptcy attorney, if someone who filed bankruptcy has not rebuilt there credit in 2 to 3 years than it probably doesn't have anything to do with the fact that he or she filed bankruptcy. Plus, rebuilding a damaged score without the help of a bankruptcy attorney could be much more difficult.
With all the myths floating around, it is somewhat refreshing to be able to tell people the truth about Missouri and Illinois bankruptcy. The fact of the matter is that, if you are in debt, you have to make tough decisionsbut those decisions are meant to improve your life and relieve you of the immense stress of debt.
