How does bankruptcy affect my credit?

Bankruptcy does hurt your credit, but if you are considering bankruptcy, chances are your credit may already be affected. Once your bankruptcy is over, you will be able to tell people that your credit was bad, but you’ve been working to rebuild it since the bankruptcy. Just try not to fall behind on anything going forward.

It is challenging for most people to obtain credit within one year of the bankruptcy. You can buy a car at a high interest rate with a considerable amount down. After one year, things will begin to get easier. After four years, many mortgage lenders will grant you a loan at their lowest interest rates. Bankruptcy will remain on your credit reports 7 to 10 years.