Once you file for bankruptcy, your credit score will likely dip. It’s difficult to speculate how far your score will fall because so many factors come into play, including your current credit standing and debts. However, you shouldn’t struggle with your finances just because you’re afraid of your credit score dropping. With the help of a bankruptcy attorney, you can get your credit back to a good place. Here’s what you need to know.

What Is the Impact of Bankruptcy on Your Credit Score?

Unfortunately, bankruptcy will have a larger impact on a good credit score than a bad one. If you had good credit before you filed, it will drop significantly. Otherwise, you will only see a moderate drop. In fact, if you had a low score, filing for bankruptcy with the help of an attorney will often be less damaging to your credit than remaining in debt.

Why Is It Important to Raise Your Score Right After Bankruptcy?

Once your credit score falls to 550 or lower, many financing options will no longer be available. It could be challenging to get loan approvals or qualify for mortgages. You may also be burdened with higher interest rates, and be given lower credit card limits. Still, there are a variety of financing options that are available to individuals looking to rebuild their score.

How Long Does Bankruptcy Remain on Your Credit Report?

Once discharged, a Chapter 7 bankruptcy will remain for up to 10 years, while a Chapter 13 bankruptcy will stay on the report for seven. However, as the years pass, the effects on your score will lessen. Also, keep in mind, it's easier to recover your score when you practice responsible financial habits like paying off your credit card bills before the deadlines.

When you need a bankruptcy attorney to help you with your credit score, contact William C. Rieth in Monroe County, NY. He will help you file for bankruptcy while getting your finances back on track. Visit this attorney online to learn more about his services, or call (585) 232-6520 to schedule your free initial consultation.