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Will Bankruptcy Affect My Credit?

Updated: Mar 21, 2023

The quickest answer is YES. According to Experian, one of the three big credit reporting agencies, bankruptcy damages your credit. Bankruptcies are considered negative information on your credit report, and can affect how future lenders view you. Seeing a bankruptcy on your credit file may prompt creditors to decline extending you credit or to offer you higher interest rates and less favorable terms if they do decide to give you credit.

Depending on the type of bankruptcy you file, the negative information can appear on your credit report for up to a decade. Discharged accounts will have their status updated to reflect that they’ve been discharged, and this information will also appear on your credit report. Negative information on a credit report is a factor that can harm your credit score.

If you are behind on your bills, your credit may already be bad. Bankruptcy may not make things any worse. In fact, it may start to make things better. Bad credit can make your life more expensive in ways that might not seem obvious.  Your credit score is used to determine interest rates on loans and credit cards, car insurance premiums, renting an apartment, purchasing a car or mobile phone and even applying for a job.   

Because bankruptcy wipes out your old debts, you may be in a better position to pay your current bills, and you may be able to get new credit. Debts discharged in your bankruptcy should be listed on your report as having a zero balance, meaning you do not owe anything on the debt. A bankruptcy can be the beginning of a plan to improve your credit score and reduce many of your everyday expenses.


We understand the stress and sleepless nights that arise from difficult financial times. Our bankruptcy attorneys are ready to get you some relief and back on the path to good credit. Contact us today for a free initial consultation.


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