How will filing for bankruptcy affect my credit score?

Filing for bankruptcy in Massachusetts will have a major impact on your credit score. Depending on the type of bankruptcy you file, you can expect your credit score to decrease anywhere from 50-220 points. Chapter 7 bankruptcies typically take a bigger hit than Chapter 13 filings. Once the bankruptcy is finalized, it will remain on your credit report for up to ten years. Even if you take steps to rebuild your credit, such as paying your bills on time and getting a secured credit card, lenders will still view you as a higher risk than someone without a bankruptcy on their credit report. During bankruptcy proceedings, lenders are not allowed to make any changes to your credit score. However, after the bankruptcy is finalized, they can and usually will reconsider their position and adjust your credit score accordingly. Even after the bankruptcy has been finalized, there are steps you can take to help start rebuilding your credit score. Make sure all your bills are paid on time, take out a secured credit card, and use it responsibly. Also, try to keep your utilization ratio on all credit cards below 30%. Most importantly, don’t forget to check your credit report regularly to make sure everything is accurate.

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How will filing for bankruptcy affect my credit score?

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