Finimpact

Frequently Asked Questions(FAQ)

Can filing for bankruptcy improve your credit score?

In some cases, yes, but it’s rare. Bankruptcy clears negative marks on your credit report, becoming the only negative item. People with very low credit scores may see a slight increase in their credit score after filing. 

However, others may see their credit score drop by 100 points or more since bankruptcy alone makes a significant impact. 

Will filing for bankruptcy prevent you from accessing new credit?

No, but bankruptcy does make it more difficult to get approved for new credit. Many lenders don’t want to take the risk and will either deny your application or give you a very high interest rate. 

While some lenders are willing to work with a borrower with bad credit, it’s best to focus on improving your credit and building positive payment history before applying for any loans or credit cards. 

Can I get a bankruptcy removed from my credit report?

If the information is accurate, no. You can dispute bankruptcy information on your credit report only if you believe it’s inaccurate. You can file disputes with three main credit bureaus: Equifax, Experian, and TransUnion.

About the Authors

Choncé Maddox

Written by: Choncé Maddox

Certified Financial Education Instructor (CFEI)

Choncé Maddox is a Certified Financial Education Instructor (CFEI) and personal finance freelance writer.

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