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How Soon Will My Credit Be Repaired After Bankruptcy?

One of the biggest concerns of people who file for bankruptcy is the extent of damage done to their credit score. There is no doubt that having a bankruptcy notation appear on your credit report will make it harder to obtain loans at favorable interest rates, but the truth is the harm done is only temporary. You might be surprised at how quickly you receive pre-approved notices for credit and auto loans after filing bankruptcy. This is not to say you should act on these offers, because the last thing anyone who has filed bankruptcy wants to do is file for a second time. But life does happen, and there are instances where a small loan might be necessary to get through a tight spot or to have much needed home or auto repairs done. So it becomes important to understand the impact filing for bankruptcy has on your credit and one of the first questions that arises in this regard is how long the bankruptcy will show up on your credit report.

When you file bankruptcy an entry is made on your credit report with date of filing and case number. This notation typically remains on your credit for up to ten years. But as mentioned above, your credit will begin to improve much faster. For instance:

  • In about 3 to 6 months you should be eligible for a credit card.
  • In that same time frame you will likely be approved for an auto loan.
  • If you reaffirmed your home and now need to refinance, you will be able to do so nearly right away with your current lender if they participate in government programs that allow for a modification of the mortgage by the current mortgage holder.

It is true that the interest rate you are offered for credit or loans after having filed bankruptcy will be higher than what is offered others without the notation of filing on their credit, but if you show you can make the payments you should be able to negotiate lower rates faster. If you have questions about bankruptcy and how it impacts your credit, call us today. We will explain the effects bankruptcy has on not only your credit, but other areas of your financial life so you can make an educated decision on whether to file.

For more information about bankruptcy, contact us at We will help by coming up with solutions that work for you.



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