Posted on: 21st Jul, 2009 05:43 pm
how will this hurt my credit score?
Hi Josh, It just depends it will usually lower your fico score by about 150-200 points on your your fico score.
hi joshdouglas,
the effect of bankruptcy on your credit score varies from one situation to another. you have not specified what kind of bankruptcy you are referring to. a chapter 13 bankruptcy has a less damaging effect on your credit as it establishes your intention of paying off the debts. this is why you can qualify for a loan after 1 year of chapter 13 discharge. however, in chapter 7 bankruptcy, you do not pay off your debts, rather they are discharged. thus, you need to wait at least 2 years to get a loan after discharge from chapter 7.
the effect of bankruptcy on your credit score varies from one situation to another. you have not specified what kind of bankruptcy you are referring to. a chapter 13 bankruptcy has a less damaging effect on your credit as it establishes your intention of paying off the debts. this is why you can qualify for a loan after 1 year of chapter 13 discharge. however, in chapter 7 bankruptcy, you do not pay off your debts, rather they are discharged. thus, you need to wait at least 2 years to get a loan after discharge from chapter 7.