Credit Ratings and Bankruptcy

Bankruptcy Attorney

People worry about what will happen to their credit score if they file bankruptcy. Usually, by the time you are contemplating bankruptcy, you have already had some negative financial marks on your credit report, and your score will reflect those instances.

Our credit rating lets lenders know if we are a good risk for extending a loan to us. Our rating can determine if we can get credit cards, move into an apartment, or buy a house or car on credit. Having a good credit score opens many doors and allows us to borrow money at a low interest rate. The better the score, the less money we have to pay on the loan in interest.

Getting Behind in Payments

When things start to go wrong in our finances, it has a snowball effect and begins to influence other areas of our finances. Pretty soon our credit score is taking hits from late or missed payments, over the limit balances, foreclosures, liens, court judgments, repossessions. Every negative mark lowers our credit scores, some staying on our credit report for up to seven years.


When you are late with your mortgage payments, you run the risk of being foreclosed on. Losing your home and all the money you already put into it. By filing a Chapter 13 bankruptcy, you can protect your home and stop the foreclosure process. Both the foreclosure and bankruptcy will affect your credit score, and the difference is you get to keep your home in bankruptcy.

Credit after Bankruptcy

If you are worried about getting credit after you file bankruptcy, you will have to prove yourself to be a good loan candidate by making your payments on time moving forward. The time needed to build your creditworthiness is a good time not to pick up any more debt and learn to manage your finances in a way that when you are ready for a large purchase, you will be prepared.

If your credit score is going down fast, and you are getting further behind in debt and unsure of how to get you and your family back on track. Contact a Cincinnati bankruptcy attorney to discuss how you can get a fresh financial start.