When a person or couple file for bankruptcy their credit score is affected. It’s not always Doom and Gloom. Generally, a person credit score is based on their past history. When a bankruptcy is filed the negative reporting stops. This means the creditors have to stop reporting a balance owed and they have to stop reporting late payments. When these two things happen my client generally see an increase in their credit score. However, there are the clients that have great credit when they file for bankruptcy and in these cases the credit is negatively affected. So how will your credit be affected when you file? I can’t predict this but I can give you a general pattern that I have seen with my past clients based on a service we use called creditinfonet. Generally we see client with lower credit scores (450 – 550) increase 50 – 100 points after filing. Clients with mid range scores (600) stay about the same and higher credit scores (700 or above) decrease 40 -80 points.
No one can predict how your credit score will look after you file bankruptcy but our office will pull each clients credit score prior to filing. We use a company called CreditInfoNet to pull each person credit reports and credit score. This company gives a report that predicts how each clients credit will be affected by the bankruptcy. We also recommend that each client sign up for a credit service that allows them access to their credit report and credit score. We recommend a service called Credit Karma (www.CreditKarma.com
). This free service allows a client to set up a user name and password account that allows the person to gain access to their credit score each month for free. This service also keeps track of the credit scores each month in a graph so you an see how it has changed month to month. It also give you information on how to repair your credit score. Highly Recommended.
Please call our office
if you would like us to pull your credit report and credit score using CreditInfoNet
to estimate how your credit will be affected.