Is bankruptcy going to ruin my credit?

Bankruptcy will not necessarily ruin your credit, especially in the long run. A bankruptcy filing will be reported on your credit history for seven (7) to ten (10) years. Its impact, while generally negative, will depend on a few factors, including the time frame (short vs long term), how high or low your credit score was when you filed, whether you receive a discharge in your bankruptcy, and what you do to rebuild your credit after you receive your discharge.
In the short term, a bankruptcy filing will have a more negative impact on your credit than in the long term, especially after the bankruptcy is no longer reported on your credit history.

  • If your credit score is higher when you file, then your score will probably fall much farther than if your score is lower when you file.
  • If you do not receive your discharge for some reason, then none of your debts will be eliminated and they will still be owed despite your bankruptcy filing.
  • Furthermore, the bankruptcy filing will still be reported on your credit, so this is not a good outcome.
  • There are a variety of things you can do to rebuild your credit after you receive your bankruptcy discharge and there are many free and easily accessible websites that specialize in credit and financial advice.