Read Our Reviews

Call Now! 855-780-4357

My Credit Score After Filing Bankruptcy:

Your credit score will take a hit after filing a chapter 7 bankruptcy. If your score was low before you filed, the drop will not be as significant as if your score is high. The fact that you filed bankruptcy will show up on your credit score for about 10 years, but that alone is not going to keep you from getting that new car, apartment, house, etc. Needless to say, the fact that you filed and a drop in your credit score is not the end of the financial world. The key is what you choose to do after the bankruptcy. Rebuild.

Filing your chapter 7 bankruptcy will the stop the bleeding in the injuries caused by your debt. As soon as your case is filed the creditors stop calling, wage garnishments and bank levies come to an end, foreclosure or repossession actions come to a halt, and minimal payments are no longer required.  Once the stress of creditor harassment comes to an end, it is time to rebuild your credit. This is an endeavor we do not want you to undertake alone. Our office works with the 720 Credit Score program to help our clients rebuild towards their financial goals after filing. 720 Credit Score is a seven step program that guarantees your credit score will be 720 or higher within 12-24 months after receiving your chapter 7 discharge. Call us today to set up an appointment and learn more about this program.

Written by Hoglund Law

The attorneys of Hoglund law are licensed in Minnesota, Wisconsin and Ohio. Hoglund, Chwialkowski & Mrozik, PLLC is based in Roseville, Minnesota. In addition to handling cases involving bankruptcy & social security, Hoglund, Chwialkowski & Mrozik, PLLC handles faulty drugs and toxic exposure.

View all author posts →

How Will a Bankruptcy Affect my Credit?

People often wonder how filing for bankruptcy will affect their long term credit. Some have the misconception that a bankruptcy will ruin their chances of ever having a good credit score. While it is true that a bankruptcy will stay on a credit report for ten years it is not the end for a person’s chances at having good credit.

In the short term a person’s credit might take a drastic hit after filing for bankruptcy. This depends on the credit score at the time of filing. The higher the score before filing the further it will fall. For example a person with a score of 680 before filing could see it fall to 550 while a person with a score of 780 could fall to 560. If a score is in the 500s or lower at the time of filing there may not be much change.

After the bankruptcy a person can begin to rebuild. Having a bankruptcy on your record will be a negative mark for some potential creditors. It may take some time after filing before a person is able to get a new loan. However, many people are surprised to find they are able to get car loans and new credit cards relatively quickly. The interest rates may be high and the credit limits low, but it is a start. By being careful and paying back any new debt on time a credit score can start to rebuild. While the bankruptcy may show up on a credit report for ten years a score can be repaired within a few years. The bankruptcy is a fresh start for people looking to build a secure financial future.

Sources:

Bankruptcy timeline: Rebuilding credit

https://www.bankrate.com/finance/debt/bankruptcy-timeline-rebuilding-credit-1.aspx

How to Rebuild Your Credit After Bankruptcy—Fast

https://www.huffingtonpost.com/curtis-arnold/how-to-rebuild-your-credi_b_5790860.html

Credit Report Q&A

https://www.myfico.com/crediteducation/questions/credit_problem_comparison.aspx

Written by Hoglund Law

The attorneys of Hoglund law are licensed in Minnesota, Wisconsin and Ohio. Hoglund, Chwialkowski & Mrozik, PLLC is based in Roseville, Minnesota. In addition to handling cases involving bankruptcy & social security, Hoglund, Chwialkowski & Mrozik, PLLC handles faulty drugs and toxic exposure.

View all author posts →

How Bankruptcy Effects Credit Score

No ifs, ands or buts, your credit score will drop.

How low?

It depends. What does your credit score look like now? If your credit is fairly unblemished prior to filing, you can expect a large drop in your score. However, if your credit is already tarnished and full of negative items, your score may see only a slight drop. A 2010 FICO report showed that an individual starting with a credit score of 780 could drop to 540 and an individual with a 680 score could fall to 530. While these are only examples, they demonstrate that an individual with a higher score to begin with has a farther way to fall, but both individuals land in close proximity (530-540). Until you file, it is impossible to state where you will land. Your credit score may be affected more or less.

How long will the bankruptcy negatively affect your credit score?

A bankruptcy will stay on your credit report for 10 years. BUT, as time passes and positive information supplements your report, the impact becomes less and less debilitating. Further, if you are motivated to rehabilitate your credit, it can be done. Your credit score can be rebuilt in 1 – 3 years.

So how do I move on and rebuild my credit after I file for bankruptcy?

Start by verifying that your credit report is free from errors. The major credit reporting bodies are TransUnion, Equifax, and Experian. Check that your report from each of these institutions is accurate and lists your pre-bankruptcy debts as “included in BK.” From there, be sure to check back on your credit score regularly (every 4 months). Eventually, you will be able to request that the pre-bankruptcy debts be removed from your report altogether.

Next, make an honest assessment of your finances and what led you to file bankruptcy in the first place. If you fail to recognize what went wrong the first time, you will likely fall into the same pattern and end up in the same trouble as before. Once you have recognized these financial faults, weed them out and start taking action to establish positive credit.

Right after filing it will be difficult to borrow money. Why? Because you are considered a greater risk to the lender, often referred to as a subprime borrower. As a result, you will likely be offered higher interest rates and greater penalties for defaulting. On the other hand, some credit card companies may find you to be a better risk and will start sending you offers immediately after you file bankruptcy. This belief that an individual who has just filed is a good risk for credit card companies is rooted in the fact that bankruptcy law forbids individuals to receive a second discharge in a Chapter 7 bankruptcy within eight years of the first filing. Meaning: a debtor cannot rid himself of the responsibility of newly acquired credit card debt for another eight years.

Remember this: THERE IS HOPE. YOUR CREDIT IS NOT LOST FOREVER! It may take some self-assessment and discipline, but it is absolutely possible. It will be more difficult at first, but as was alluded earlier, as time passes the positive elements to your credit will increase and the “bad” will begin to dwindle.

 

 

Written by Hoglund Law

The attorneys of Hoglund law are licensed in Minnesota, Wisconsin and Ohio. Hoglund, Chwialkowski & Mrozik, PLLC is based in Roseville, Minnesota. In addition to handling cases involving bankruptcy & social security, Hoglund, Chwialkowski & Mrozik, PLLC handles faulty drugs and toxic exposure.

View all author posts →

How will Filing Bankruptcy Affect my Credit?

Many people wonder how filing bankruptcy will affect their credit. The truth is that there is not a clear answer to this question. Most people who file bankruptcy are already behind on their bills and often have bad credit as a result. In these circumstances, it is hard to say if filing bankruptcy will make things worse.

The fact that a person has filed bankruptcy can appear on his or her credit report for a period of 10 years after the date the case was filed. However, this doesn’t mean that a person who files for bankruptcy will be unable to obtain credit for 10 years! Because bankruptcy wipes out all of a person’s old debts, he or she may actually be in a better position to pay new lenders after the bankruptcy. As a result, some lenders are willing to extend credit to a person who has filed a bankruptcy soon after the case is discharged. However, the interest rates and fees may be high, so a person who has filed bankruptcy should be careful not to take on debt he or she can’t pay.

After filing bankruptcy, debts discharged in the bankruptcy should be listed as having a zero balance on the filer’s credit report. Debts that are incorrectly reported as having a balance will negatively affect a person’s credit so it is important to check your credit report after filing bankruptcy. Any errors should be reported to the credit reporting agency.

Written by Hoglund Law

The attorneys of Hoglund law are licensed in Minnesota, Wisconsin and Ohio. Hoglund, Chwialkowski & Mrozik, PLLC is based in Roseville, Minnesota. In addition to handling cases involving bankruptcy & social security, Hoglund, Chwialkowski & Mrozik, PLLC handles faulty drugs and toxic exposure.

View all author posts →

Bankruptcy and Credit Scores

A credit score is a reflection of your credit history. Filing a bankruptcy will show up on your credit report and be reflected in your score. However, this is not as bad as one might think. Most people that file bankruptcy already have negative credit reporting affecting their credit score, so a bankruptcy doesn’t actually lower their score by much. Another consideration is that filing bankruptcy puts a person in a different “peer group” for purposes of determining a credit score. “Peer groups” are used by FICO to compare consumers against other consumers in similar situations. Bankruptcy filers are a separate group. Once a person files, their credit worthiness will be compared to other people who have also filed.

When someone with a low credit score decides that they want to improve their score, they need to know how to go about doing so. Doing things like opening new lines of credit or closing existing accounts to improve your credit score will do very little to improve your score in the short term. Simply put, you have the power to create the credit score that you want to have, you just need to have patience and put in the effort over time. The most important factor is simply to make payments to your creditors on time every time. However, there are other things you can do to help build a solid credit history. Keep balances low on revolving lines of credit, such as credit cards, and open new credit accounts only when you have to. Be wary of offers to move debt from one credit card to another, it is better to pay off debt than to transfer it. Remember that there is no quick fix to improving a credit score and don’t believe anyone who tells you different.

Written by Hoglund Law

The attorneys of Hoglund law are licensed in Minnesota, Wisconsin and Ohio. Hoglund, Chwialkowski & Mrozik, PLLC is based in Roseville, Minnesota. In addition to handling cases involving bankruptcy & social security, Hoglund, Chwialkowski & Mrozik, PLLC handles faulty drugs and toxic exposure.

View all author posts →

Information About Credit Scores

According to data from Credit Karma, the average credit score in the United States is 666. The current trend for lenders is that a credit score of 660 is needed to obtain a mortgage, car loan, or credit card. Approximately 40% of Americans have a credit score lower than 660. This means four out of ten consumers will likely be denied credit or pay high interest rates. This illustrates the importance of credit scores. New federal regulations have increased consumers’ access to their credit scores. However, many think the new regulations do not go far enough. Here are a few things to know about credit scores.

  1. You may have the right to see your credit score for free. If you are denied credit or are forced to pay higher interest rates because of your credit report, you are entitled to see your credit report for free. However, this regulation does not apply to all consumers, only to those who are denied or given high interest rates.
  2. The threshold for obtaining credit is always changing. Previously, a credit score of 660 was considered a good score. During the recession, a score of 720 or 750 became the new standard. Lenders also focus on credit history and other credit details when deciding whether to lend.
  3. Track your credit score. Credit scores change, so it is not enough to just check your score once. Monitor your credit score to see how decisions affect your score and identify areas where you can improve your score.
  4. Do not be surprised if your credit score varies. There are many different credit score models used by lenders. Focus on risk factors, such as amount of debt, number of accounts, and credit use, because improvement in risk factors will likely improve your score no matter what model is used.

 

 

Source:

Justine Rivero, 4 Things to Know About Credit Scores, https://money.msn.com/credit-rating/4-things-to-know-about-credit-scores-forbes.aspx (accessed August 24, 2011).

Written by Hoglund Law

The attorneys of Hoglund law are licensed in Minnesota, Wisconsin and Ohio. Hoglund, Chwialkowski & Mrozik, PLLC is based in Roseville, Minnesota. In addition to handling cases involving bankruptcy & social security, Hoglund, Chwialkowski & Mrozik, PLLC handles faulty drugs and toxic exposure.

View all author posts →

Beware of credit repair scams.

Beware of credit repair scams.

There are many credit repair companies that are essentially scams. They take your money and they do not improve your credit or they only temporarily improve it. The Federal Trade Commission (FTC) offers this advice for avoiding credit repair scams:

  • Do not work with a company that wants you to pay for credit repair services before they have provided services
  • Don’t work with a company that won’t tell you your legal rights or explain what you can do on your own
  • Don’t work with any credit repair company that tells you not to contact a credit reporting company directly
  • Avoid a company that suggests disputing all of the information on your credit report, whether or not it is accurate
  • You cannot legally create a new “credit identity”; if you follow illegal advice and commit fraud, you may be charged with a crime

 

Written by Hoglund Law

The attorneys of Hoglund law are licensed in Minnesota, Wisconsin and Ohio. Hoglund, Chwialkowski & Mrozik, PLLC is based in Roseville, Minnesota. In addition to handling cases involving bankruptcy & social security, Hoglund, Chwialkowski & Mrozik, PLLC handles faulty drugs and toxic exposure.

View all author posts →