If you end up filing a Chapter 7 or Chapter 13 Bankruptcy, expect your credit score to dip at least 200 points. All of your past open accounts will show that they're included in the bankruptcy, and you'll essentially have no liabilities. In the case of a Chapter 7 Bankruptcy, all of your debt is eliminated after the sale of your assets.
Besides the dip in your credit score, the bankruptcy will show up as a public record on your credit report. Even if you do build your credit score into the high 600's and low 700's 2-3 years after bankruptcy, which is totally doable, your bankruptcy will still be listed. A Chapter 7 Bankruptcy will stay on your credit report for 10 years, and a Chapter 13 Bankruptcy will stay on your report for 7 years. If they show up any longer than the stipulated time, you can appeal to the credit bureaus to have them removed.
However, years after these public records are removed from your report, creditors such as American Express keep records on those who have had their debts discharged via bankruptcy no matter how long ago it happened.
Very informative post! thanks.
ReplyDeleteGood information here
ReplyDeleteDon't do bankruptcy pay your bills on time :)
ReplyDeletedidnt think your credit score could go below 400 =/
ReplyDeletei hope i never have to go through this!
ReplyDeletedon't get laid off..
ReplyDelete200 points? crazy!!!
ReplyDeletehope i never need this info
ReplyDeletealways good to know man, glad you could keep us updated
ReplyDeletelaid off = fail. T.T
ReplyDelete@thenitefalls, how can you do that when people are losing their jobs left and right?
ReplyDeletethis is why i never use credit
ReplyDeleteamex rules
ReplyDeletethats what id expect to happen to ur credit wen u file for bankruptcy
ReplyDeleteVery helpful information...thanks for sharing.
ReplyDeletethanks for your support! showing some love
ReplyDeletegreat info!
ReplyDeletenow thats some sweet info :D
ReplyDeleteNOOO I don't want to be poor :( No charge card thanks.
ReplyDeleteThere is a saying that goes "Don't waste what you don't have". If you are using a credit card is because you want to work in your credit score, you supposed to have already the money to pay your debts. I always pay even couple days before the bill comes to my mailbox. =) Good info!
ReplyDeletedisturbing posting, dude
ReplyDeletedisturbing info, man
ReplyDeleteI don't want to be bankrupted :(
ReplyDeleteouch. gotta keep that score up.
ReplyDeletegreat info dude!
ReplyDeleteI don't even have a credit card. Is that a good thing or a bad thing?
ReplyDeletevery interesting info, thanks
ReplyDeletegood to know,your blog is cool
ReplyDeletedamn that cant be too good
ReplyDeleteGreat to know!
ReplyDeleteThat sucks. The info is good to know though.
ReplyDeleteThe last bit of info is really usefull because that way it never really clears of your record... Which is shitty...
ReplyDeleteI won't be poor ever
ReplyDeleteoh man... bankuptcy has more effects on your life than you can imagine :(
ReplyDeletegreat infomation many thanks
ReplyDeletedamn yea bankruptcy is insane
ReplyDeleteYou need to be careful
ReplyDeleteGood post really!
ReplyDeletei like your post!
ReplyDeleteVery true. My grandmother was supposed to help me with a student loan (retired a long time ago, very economically comfortable) a while back but couldn't. We were like, wtf, her credit score is awesome but it was because she'd filed bankruptcy like a decade ago. Horseshit.
ReplyDeletelol i read this on someone elses blogs.
ReplyDeleteGood information here
ReplyDeleteI hope I never become bankrupt.
ReplyDeletethats insane
ReplyDelete200 points?
Yikes! Glad I pay off my card monthly!
ReplyDeletei think its good that it goes away after a while. otherwise a lot of people would be screwed.
ReplyDeletepay for everything in cash, make credit obsolete!
ReplyDelete200 points seems like a lot and I know nothing about it.
ReplyDeleteman, seems like bankruptcy would totally screw you over!
ReplyDeletedamn american express
ReplyDelete