Bankruptcy effect my credit score?
It depends on what your credit was like before. Usually bankruptcy
will have a good effect on credit as it cuts off the ongoing problems
associated with slow and non-payment. It provides a fresh start. After
two years the bankrupt debtor should be in a much better position with
the CRAs than before they filed. Bankruptcy is a public record that can stay on your credit report for up to ten years after filing (current policy of the 3 major CRAs is 7 years, just like unpaid bills). Following bankruptcy, it is illegal for a creditor to report anything other than zero balance, discharged in bankruptcy.That said, it is important for the client to realize that a credit
score's only purpose is to put them back in the same trouble they are
in today. "What do you need the credit for?" One in ten has an answer for that. I have no idea how it will effect their personal score because that really depends on what their score is now and plus, there are different companies computing scores, not just FICO anymore plus they change their algorithms at will PLUS what you can get with what score varies on the whim of fate and the economic theories of the creditors. On the other hand, a fresh start will enable the client to start saving money so when the bankruptcy is a few years back and his or her scores will be on the upswing, she or
he will have a decent downpayment for whatever it is she or he needed
that credit for in the first place.
