When considering filing bankruptcy or actually going through the process, most people have one fear in common: How will this bankruptcy affect my credit? People are concerned that a negative impact on credit might affect their ability to buy a home or a car or finance other items in the future. 

The Impact Bankruptcy Has on Your Credit

Your credit score could fall after filing bankruptcy, but you really can’t predict exactly how much. Any fall depends largely on your current credit standing what information appears on your credit report.

In 2010, FICO reported on the impact that bankruptcy and other credit errors have on your credit score. They published two different examples of credit profiles. In one, the bankruptcy made the credit score go down 240 points for a person that had a credit score of 780. In the second profile, the credit score would go down 150 points for someone that had a credit score of 680. Note that the person with the better credit score lost more points, but both profiles ended up close to the same score, 540 and 530. These profiles are all simply scenarios. The reality, again, is that you won’t know exactly how much your credit score will be impacted unless you actually file for bankruptcy.

Rebuilding Your Credit After Bankruptcy
Once the bankruptcy process is complete and you are no longer struggling with finances, it's time to focus on improving that credit score. This is not a difficult task. The main way to do this is to create a positive payment history with any outstanding accounts that were not affected by bankruptcy, as well as with new creditors. Many people who have undergone bankruptcy are surprised to see that they still receive credit card offers and surprisingly soon. Know that those who have filed bankruptcy can get an excellent credit score again.

Consulting With a Bankruptcy Expert
Each person's bankruptcy is different. For more information on how your credit will be affected, it's critical to consult with an experienced attorney who has expertise in the field of bankruptcy. Ron Lundquist specializes in bankruptcy law. Since 1999, he's been assisting people with bankruptcy. Mr. Lundquist can help you get a fresh start after bankruptcy. Contact Ron today to set up a time to further discuss bankruptcy and how it affects your credit.