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How does bankruptcy affect credit?

A very common question is the relationship between bankruptcy and credit score. Some of the people that are considering bankruptcy already have bad credit. When you file bankruptcy, your credit can and many times does actually get better than before filing. Two reasons, among other reasons, is because your debts have been discharged so you have less debt than before filing, and you have no late payments since you have no payments due to the debt discharge. It is important to note that a bankruptcy filing does drop your credit score, but it can be raised quickly.

To raise your credit score, please see the blog entry entitled "5 Tips to Improve Your Credit After Bankruptcy."


For more on how bankruptcy affects credit, please feel free to consult a Houston bankruptcy attorney from the Rashid Law Firm.