San Jose CA
Credit After Bankruptcy

Rebuild Credit Score in Santa Clara and the Bay Area

Your credit score will usually improve after you file for bankruptcy. Many individuals believe their credit will be ruined for 10 years after they file. That is simply not true. You can actually rebuild your credit score faster through a bankruptcy filing versus continuing to let your debt spiral out of control.

At the California Law Offices of W. Kirk Moore, we understand the emotional and financial hardships attached to Chapter 7 and Chapter 13. We are also aware of the social stigma associated with bankruptcy and do our best to help you achieve the debt relief you deserve.

Credit Reporting

The key to understanding how bankruptcy affects your credit score is understanding how credit is reported. Your report will state that you filed for bankruptcy, however, the bankruptcy filings can only appear on your credit report for a limited time. A Chapter 7 filing can be on your report for up to 10 years; a Chapter 13 filing can only be on your report for up to eight years. However, that does not mean they will be on your report for that long.

Improving Your Score

Your credit score number should improve within the first year after your Chapter 7 debt discharge. After the debts are removed, your report will start building, or noting, good debt reporting. The further out from your bankruptcy discharge, the higher your credit score.

Once your debts are wiped away either through Chapter 7 discharge or Chapter 13 repayment, specific actions can help you improve your score because your creditors will have positive things to report. We recommend:

  • Obtaining a prepaid secured credit cards
  • Staying current on your secured bills
  • Making car payments on time

It is important to note that employers are not allowed to consider your credit score or bankruptcy history when hiring or firing you. Please contact our San Jose lawyer immediately if you feel you were discriminated against due to your financial status.