If you feel as though you are fighting a losing battle with your debt, you are not alone. Many Kentucky residents are exactly where you are. The idea of bankruptcy sounds daunting. You have heard the myths. It can wreak havoc on your credit score. You could lose everything. Well, here is the truth behind what happens to your credit after you file for bankruptcy.
The truth is that you will have to deal with the loss of your credit score. If it was high to begin with, it may be easier to bounce back. If you had a poor credit score, it may take more time for you to rebuild. You can rebuild though. Forbes suggests that you open a secured credit card after filing for bankruptcy. These cards require a deposit and you receive credit based on how much of a deposit that you put down.
After two years, out of the people who file for bankruptcy, at least 65% have a score of over 640. This is great news. It does not take long for your credit score to rise again. It is important that you consider the reasons you filed for Chapter 7 bankruptcy to begin with. Do not allow yourself to fall into the same habits that you used to. Do not accept credit cards that you cannot afford.
Responsible financial decisions and establishing credit again can provide you with the path that you need to a better credit score.
The above information is to educate you on credit scores after bankruptcy. It is not intended as legal advice.