How Much Will Bankruptcy Hurt My Credit Report?

Chapter 7 bankruptcy will impact your credit report for a full seven years. Its effects vary based on how high your credit score is when you file.

FICO released case specific information back in 2010 on how bankruptcy will impact your personal credit score. In two scenarios, they revealed that a person with a 780 credit score could lose as much as 240 points while another with a 680 credit score could lose up to 150 points. 

The person with the higher score suffers a greater point loss. Both cases have your credit score settling at approximately the same level of 540 and 530. Should credit issues have already dragged your score down into the 500’s, then your score has already been negatively impacted to a large degree and you have less to lose. 

These are only examples. Your score could suffer less or even a little more depending on your personal credit and debt circumstances when you file for bankruptcy. 

FICO does not distinguish between Chapter 13 and Chapter 7 bankruptcies which cover personal debt discharge. 

It is worth noting that Chapter 7 ends fastest in only a matter of months following filing if you qualify. Chapter 13 bankruptcies take years to exit from as they involve from three to five years plans of repayment. 

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