The Law Office Of Christopher W. Kelley

"Affordable Legal Representation by an Experienced Attorney Who Listens and Cares"

New Hampshire Bankruptcy Attorney

Call Today For A Free Consultation (603) 637-1453

2 Wellman Avenue, Suite 240 Nashua, NH 03064

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Will Filing Bankruptcy Affect My Credit Score?

It is a common misunderstanding that the reporting of a bankruptcy on a credit report will harm an individual’s credit score.  This is simply not true. While bankruptcy will be listed on a credit report for up to 10 years, the listing of a bankruptcy in and of itself does nothing to affect a credit score.
There are three types of scenarios that cause bad credit scores:

  1. The non-payment of debt
  2. Individuals who pay cash for everything (the credit card companies don’t know they exist); and
  3. Individuals who pay off their credit cards in full when with each statement.

Good credit scores come from the paying of debt on time, over time.  Never being late on a balance due, paying that debt every month that it is due, and paying over a period of time is the key to a good credit score.

How to Increase Your Credit Score

Once your bankruptcy case is closed, the creditors who were discharged are no longer allowed to remain on your credit report.  The removal of those discharged creditors will likely cause your credit score to get an automatic bump up of approximately 100 points.

Credit card companies will also start to solicit you with credit card applications.  They do this for a couple reasons.  They know that you can’t file bankruptcy again for 8 years, and they know you are a good credit risk because you don’t have any debt.

If you are looking to improving your credit score beyond the post discharge bump, it may be worth it to apply for a credit card and buy something for no more than $1000.00 and make the minimum monthly payment on time, every time, over time.  By doing this, you will see you credit score steadily improve over the course of 12 months.

For more information contact a NH bankruptcy lawyer today at: 603-637-1453