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I had filed Ch.7 personal bankruptcy few years ago, although I am not proud of it, but it doesn’t seems to hurt my credit score too bad. I am not aware of my credit score before the bankruptcy, but for the last 2 years my score remains at about 700, which is not bad, I don’t think my score was 800+ before the bankruptcy. Recently I even got approved with high limit credit cards with 0% APR for 12 months, and banks that had written off my debt offer me credit card again. Everyone says bankruptcy is a nuclear bomb to the credit score and profile for 10 years, but it doesn’t seems to be so in my case. Does all the negative associate with bankruptcy are truth or myth ?

5 Thoughts on Does bankruptcy lower credit score tremendously ?
  1. Reply
    July 20, 2011 at 4:57 am

    Did your credit report mention the bankruptcy?

    But what are you doing getting new credit cards?
    Isn’t that how you wound up in bankruptcy in the first place?

  2. Reply
    mister ed
    July 20, 2011 at 5:00 am

    i don’t know how you dodged the bullet but good luck any way and i just hope you do not use the new credit to get back in that old boat again!!!

  3. Reply
    July 20, 2011 at 5:13 am

    I believe that many of the negatives associated with bankruptcy are just a myth. The experts and the people who say otherwise are just wrong.

    (I’m just amazed when I watch all of the TV shows that are about people struggling with their debts. The advice is always the same: “you have to pay your debts.” They never tell anyone that bankruptcy is an option. It’s just crazy, because many times you can’t pay your debts and bankruptcy is your only option.)

    Before I filed for bankruptcy, I attended a seminar at the Learning Annex, which was about how to pay off all of your debts. The seminar wasn’t realistic. The person who gave the seminar actually said that “everyone can repay their debts.” This isn’t true.

    Millions of people file for bankruptcy each year. Life goes on and does in fact get better.

    Bankruptcy will give you a fresh start. It’s a new opportunity in life.

    I also filed about a year ago. I didn’t have any choice because I couldn’t even make the minimum payments on my credit cards. Also, I had unexpected medical bills that I just couldn’t afford to pay.

    In my opinion, if a person has really bad credit and is struggling to pay their bills each month, filing for bankruptcy can actually increase your credit score.

    After I filed for bankruptcy it was very easy for me to get new credit cards. Also, I’ve received offers from lenders who want to lend me money to buy a car.

    Also, after you file for bankruptcy you are a much better credit risk, because you cannot file again for a certain number of years and also you are now debt free.

    Good question.

  4. Reply
    July 20, 2011 at 5:56 am

    I think it might have been a clerical error to allow your credit score to stay so good. Really, declaring bankruptcy anywhere is like wearing a big tee shirt with “Don’t Loan Me ANY Money” written on it.

    It is absolutely true what they say about bankruptcy ruining your credit. I don’t know how you avoided it. Perhaps your credit score was higher than you thought when you declared. I am truly astonished at your results.

  5. Reply
    July 20, 2011 at 6:30 am

    Typically, your score is not lowered by filing a bankruptcy. Most people who file are so far behind on bills and are carrying such high credit card balances, that their credit score is already really low. About a year after filing, your score can improve by as much as two hundred points because you are no longer late on payments and aren’t carrying the high balances. This doesn’t happen in every case, but oddly enough it does happen and people end up with better credit after filing.

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