How bad of an impact will bankruptcy have on my credit?
A bankruptcy can cause significant credit damage. But, oddly enough, most of the damage that occurs after a bankruptcy is not due to the event itself, but rather the failure of the creditors to properly update accounts after the discharge. In addition, bankruptcy has been known to generate a cascade of errors capable of leaving your credit report in a terrible state of disarray.
Mitigate the Damage
This all sounds rather grim, but there is some good news as well. You can significantly mitigate the credit damage of a bankruptcy with credit repair. Accounts that have been discharged are not supposed to report with a past due balance or in a collection status; all of these lingering reporting issues can be fixed. In addition, any unexpected credit reporting errors can be eliminated. You will be pleasantly surprised to see how tidy your credit report can look after a bankruptcy with the help of credit repair.
Get Back on Track
Beyond the reporting issues it is important to note that a bankruptcy is not a reason to give up on credit. You want to get your credit scores back on track as quickly as possible. If the events surrounding your bankruptcy have left you without any open accounts you need to rebuild now. This is an essential part of your credit repair process. After a bankruptcy you will not be able to get regular cards, so get two secured cards to get your scores moving in the right direction.
What can you expect? If you take all of the appropriate steps, including opening new secured credit cards, your credit repair effort will pay off. Your credit report will be nice and neat, and there is no reason that your credit scores cannot be in the 680 range.