So what happens to your credit when you
file bankruptcy? Does your score go to zero? How fast are the credit reporting agencies notified? Stay tuned for our
next video for more information so this question comes up of course a
lot when I’m consulting with consumers about filing for bankruptcy and of
course it’s a ballot question is what is this going to do to my credit now
probably for about 99% of the folks that I’m consulting with their credit is
already in the toilet they’ve already missed payments for 90 days they could
be in foreclosure their car got repossessed so at this point we’re
really talking about apples and oranges filing bankruptcy is actually not gonna
do too much to your credit if it’s already way way way down now of course
if you have perfect credit and you just have to file because you’re about to go
off the the debt cliff so to speak of course you’re gonna have a dramatic drop
in your credit score however I think one of the most shocking things for our
clients is how fast their credit rebuilds after they come out of their
bankruptcy now for our chapter 7 clients they’re only in the bankruptcy maybe
four or five months but the good thing is as soon as you file for bankruptcy
your creditors have to stop reporting negative information and from that point
going forward your credit score is going to start rebuilding now my rule of thumb
which I always tell clients is in about 12 months your credit should actually be
back up to what’s considered good average but if you give it another 12
months and you’ve taken the appropriate steps to where you’re rebuilding your
credit you’re paying your bills on time you should easily be able to get your
credit score to a really good credit score 700 above in 24 months one thing
that is always key and we always stress with our clients is when you go through
a bankruptcy whatever you do make sure when you come out of the bankruptcy you
immediately or shouldn’t say immediately six weeks after the bankruptcy pull your
credit report again and check to make sure that all the items that were on
your credit report are now showing that they were discharged in a bankruptcy
it’s very very key that your credit report is correct if you have judgments
you need to make sure that it shows those
notes have been released and how does that happen well your attorney would
have need to have filed a motion to avoid lien and an order would be entered
but that’s in one of our other videos so if you want any any additional
information on that feel free to check out that video and we can go into more
detail about that but credit after bankruptcy believe it or not happens
really fast and you know you you get your fresh start very quickly so just
make sure that you use it correctly and as always if you have any questions
about this video or any of the videos on our channel feel free to shoot me an
email it is in the description below and I’m happy to answer questions