The number one question we get is “How will bankruptcy affect my credit score?”
The effect of a bankruptcy filing is minimal on your credit score. The higher your score the more the drop. Generally, you are looking at a 50 to 100 point drop. However, you immediately will see a rebound as a result of the creditors no longer being able to report monthly that you are not paying your bills.
If your credit score is already very low, the impact of the actual filing will be negligible. The bankruptcy filing will provide you with the ability to rebuild your score within three years to the point of buying a house. Bankruptcy is a very powerful tool for getting your finances back on track.
You can track your credit score by setting up a free account on CreditKarma.com.