Does Bankruptcy Affect My Credit?

Most of the time when a person is contemplating bankruptcy, that person’s credit score is low. A bankruptcy discharge will stay on a person’s credit report for 10 years.

However, that does not mean that person cannot get credit after bankruptcy.

Right after discharge, a person will be able to get credit cards (which is not advisable) or buy a vehicle but the interest rates will be high. Once a person gets about three years beyond the discharge, they should be able to buy a home or a vehicle at a good interest rate. When a person’s credit score is already low, bankruptcy can actually help that score increase over time because the debtor is not longer responsible for their debt.