Is My Credit Doomed if I File for Bankruptcy?

NO, it’s not doomed! In fact, most of our clients see a huge improvement in their credit score just by filing a bankruptcy.  In most cases, our clients come to us when they have either been late on payments or have completely defaulted on some or all of their loan payments.  In these cases Bankruptcy helps jump start your credit score because it gets rid of all your debt.  The amount of the score improvement varies, but it averages between 75 to 125 point improvement.

How Did My Credit Score Go Up?

Creditors and Credit Bureaus know bankruptcy is your Constitutional Right.  Filing for Bankruptcy does not mean that you are ignoring your financial obligations; in fact it is the opposite as it shows that you are being proactive with your responsibilities by getting your finances back in order.

How Long Will My Bankruptcy Be On My Credit Report?

A Bankruptcy will stay on your credit report for 10 years.  But that doesn’t mean you will not be able to work towards a great credit score within a few years after filing bankruptcy.  After filing for bankruptcy, you will have a clean slate and you will get credit card offers shortly after filing bankruptcy.  So you can start improving your credit by applying, using and paying off the new credit card offers, without the burden of your past debts.  Although, each case is different, our clients have gone to have built great credit and were able to finance credit, cars and houses as well after they filed for and completed their bankruptcy.


If you live in the Los Angeles or Riverside area and have questions about a bankruptcy call attorney Robert Reganyan for free 15-minute phone consultation at 818-649-0879.