How to Rebuild Credit After Bankruptcy
Each year, over 500,000 Americans file for bankruptcy, and the reasons run the gamut from overspending on needless purchases to racking up unavoidable medical debt. If you're planning to declare bankruptcy, you should know that while it might seem like an easy solution to your debt problem, it's actually far from a picnic. That's because a bankruptcy will stay on your record for up to seven years in the case of a Chapter 13 filing and up to 10 years in the case of Chapter 7. The good news, however, is that you can establish good credit even with a bankruptcy filing on your record. Here's how.
Many people who file for bankruptcy ultimately find it difficult to recover. That's because a single bankruptcy filing could cause a good credit score to drop by 200 points or more and a bad score to drop between 130 and 150 points. Furthermore, a bankruptcy will remain on your credit report for up to seven or 10 years depending on the specifics of your case. During this time, you might struggle to get approved for an apartment lease, car loan, or credit card, among other things.
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Source: Fool.com
