\nWhen considering bankruptcy, it’s natural to wonder how it will impact your credit score. Two common types of consumer bankruptcy are\u00a0<\/span>Chapter 7<\/span><\/a>\u00a0and\u00a0<\/span>Chapter 13<\/span><\/a>. Understanding that both types will negatively affect your credit score is essential. Still, the extent of the impact depends on various factors unique to each person’s situation.<\/span>
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[av_heading heading=’Factors That Affect the Credit Score Impact’ tag=’h2′ link_apply=” link=’manually,http:\/\/’ link_target=” style=” size=” subheading_active=” subheading_size=’15’ margin=” padding=’10’ color=” custom_font=” custom_class=” admin_preview_bg=” av-desktop-hide=” av-medium-hide=” av-small-hide=” av-mini-hide=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=”][\/av_heading]<\/p>\n
[av_heading heading=’Existing Credit Score’ tag=’h3′ link_apply=” link=’manually,http:\/\/’ link_target=” style=” size=” subheading_active=” subheading_size=’15’ margin=” padding=’10’ color=” custom_font=” custom_class=” admin_preview_bg=” av-desktop-hide=” av-medium-hide=” av-small-hide=” av-mini-hide=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=”][\/av_heading]<\/p>\n
[av_textblock size=” font_color=” color=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” av_uid=’av-lfek9065′ custom_class=” admin_preview_bg=”] [av_heading heading=’Payment History’ tag=’h3′ link_apply=” link=’manually,http:\/\/’ link_target=” style=” size=” subheading_active=” subheading_size=’15’ margin=” padding=’10’ color=” custom_font=” custom_class=” admin_preview_bg=” av-desktop-hide=” av-medium-hide=” av-small-hide=” av-mini-hide=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=”][\/av_heading]<\/p>\n [av_textblock size=” font_color=” color=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” av_uid=’av-lfek9g4d’ custom_class=” admin_preview_bg=”] [av_heading heading=’Amount of Debt Discharged or Repaid’ tag=’h3′ link_apply=” link=’manually,http:\/\/’ link_target=” style=” size=” subheading_active=” subheading_size=’15’ margin=” padding=’10’ color=” custom_font=” custom_class=” admin_preview_bg=” av-desktop-hide=” av-medium-hide=” av-small-hide=” av-mini-hide=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=”][\/av_heading]<\/p>\n [av_textblock size=” font_color=” color=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” av_uid=’av-lfek9vw8′ custom_class=” admin_preview_bg=”] [av_heading heading=’Tips for Choosing the Right Bankruptcy Type’ tag=’h2′ link_apply=” link=’manually,http:\/\/’ link_target=” style=” size=” subheading_active=” subheading_size=’15’ margin=” padding=’10’ color=” custom_font=” custom_class=” admin_preview_bg=” av-desktop-hide=” av-medium-hide=” av-small-hide=” av-mini-hide=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=”][\/av_heading]<\/p>\n [av_textblock size=” font_color=” color=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” av_uid=’av-lfekae03′ custom_class=” admin_preview_bg=”] [\/av_textblock]<\/p>\n [av_heading heading=’Resources for Credit Repair’ tag=’h2′ link_apply=” link=’manually,http:\/\/’ link_target=” style=” size=” subheading_active=” subheading_size=’15’ margin=” padding=’10’ color=” custom_font=” custom_class=” admin_preview_bg=” av-desktop-hide=” av-medium-hide=” av-small-hide=” av-mini-hide=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=”][\/av_heading]<\/p>\n [av_textblock size=” font_color=” color=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” av_uid=’av-lfekapc5′ custom_class=” admin_preview_bg=”] [\/av_textblock]<\/p>\n [av_heading heading=’Credit Score Recovery Timeline’ tag=’h2′ link_apply=” link=’manually,http:\/\/’ link_target=” style=” size=” subheading_active=” subheading_size=’15’ margin=” padding=’10’ color=” custom_font=” custom_class=” admin_preview_bg=” av-desktop-hide=” av-medium-hide=” av-small-hide=” av-mini-hide=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=”][\/av_heading]<\/p>\n [av_textblock size=” font_color=” color=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” av_uid=’av-lfekb63a’ custom_class=” admin_preview_bg=”] It’s essential to remember that credit score recovery requires consistent effort and responsible financial habits.<\/span> [av_heading heading=’Post-Bankruptcy Financial Management Tips’ tag=’h2′ link_apply=” link=’manually,http:\/\/’ link_target=” style=” size=” subheading_active=” subheading_size=’15’ margin=” padding=’10’ color=” custom_font=” custom_class=” admin_preview_bg=” av-desktop-hide=” av-medium-hide=” av-small-hide=” av-mini-hide=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=”][\/av_heading]<\/p>\n [av_textblock size=” font_color=” color=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” av_uid=’av-lfekbz5d’ custom_class=” admin_preview_bg=”] [\/av_textblock]<\/p>\n [av_heading heading=’Get Expert Advice’ tag=’h2′ link_apply=” link=’manually,http:\/\/’ link_target=” style=” size=” subheading_active=” subheading_size=’15’ margin=” padding=’10’ color=” custom_font=” custom_class=” admin_preview_bg=” av-desktop-hide=” av-medium-hide=” av-small-hide=” av-mini-hide=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=”][\/av_heading]<\/p>\n [av_textblock size=” font_color=” color=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=” av_uid=’av-lfekdvhv’ custom_class=” admin_preview_bg=”] You can visit our attorney profiles for\u00a0<\/span>Terry Duncan<\/span><\/a>\u00a0and\u00a0<\/span>Damon Duncan<\/span><\/a>\u00a0to learn more about our team. They have decades of experience in consumer bankruptcy and are committed to helping you find the best solution for your financial situation.<\/span><\/p>\n Ultimately, while bankruptcy will impact your credit score, it also offers an opportunity for a fresh financial start. By carefully considering your options, using the resources available, and working with a knowledgeable attorney, you can make the best decision for your circumstances and begin rebuilding your credit. Remember that the impact on your credit score depends on your unique situation. The focus should be on selecting the bankruptcy type that best suits your financial needs and long-term goals. A qualified bankruptcy attorney can assist you through that process.<\/span> [av_heading heading=’FAQs About Which Bankruptcy Is Worse for Your Credit’ tag=’h2′ link_apply=” link=’manually,http:\/\/’ link_target=” style=” size=” subheading_active=” subheading_size=’15’ margin=” padding=’10’ color=” custom_font=” custom_class=” admin_preview_bg=” av-desktop-hide=” av-medium-hide=” av-small-hide=” av-mini-hide=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=”][\/av_heading]<\/p>\n [av_toggle_container initial=’0′ mode=’accordion’ sort=” styling=” colors=” font_color=” background_color=” border_color=” hover_colors=” hover_background_color=” hover_font_color=” colors_current=” font_color_current=” background_current=” background_color_current=” background_gradient_current_color1=” background_gradient_current_color2=” background_gradient_current_direction=’vertical’ av_uid=’av-lfekm4uo’ custom_class=”] [av_hr class=’default’ height=’50’ shadow=’no-shadow’ position=’center’ custom_border=’av-border-thin’ custom_width=’50px’ custom_border_color=” custom_margin_top=’30px’ custom_margin_bottom=’30px’ icon_select=’yes’ custom_icon_color=” icon=’ue808′ av_uid=’av-1o5588f’]<\/p>\n [av_social_share title=’Share this entry’ style=” buttons=” share_facebook=” share_twitter=” share_pinterest=” share_gplus=” share_reddit=” share_linkedin=” share_tumblr=” share_vk=” share_mail=” av_uid=’av-1allcy7′]<\/p>\n [av_comments_list av-desktop-hide=” av-medium-hide=” av-small-hide=” av-mini-hide=” av_uid=’av-q7513j’]<\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5,6,7,8,9,10],"tags":[],"class_list":["post-12591","post","type-post","status-publish","format-standard","hentry","category-after-you-file","category-bankruptcy","category-chapter-13","category-chapter-7-2","category-credit","category-duncan-law-blog"],"yoast_head":"\n
\nYour existing FICO credit score<\/a> plays a role in determining how much your score might drop after filing for bankruptcy. For example, if your credit score is already low due to missed payments or high credit utilization, filing for bankruptcy may lower your score.
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\nA solid history of timely payments before bankruptcy can help mitigate the impact on your credit score. However, if you’ve had late or missed payments, the negative effect on your credit score could be more substantial.
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\nThe amount of debt discharged in a Chapter 7 bankruptcy or repaid through a Chapter 13 repayment plan can also influence your credit score. Generally, the higher the amount of discharged or repaid debt, the more significant the effect on your credit score.<\/span>
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\n![\"\"](\"https:\/\/www.duncanlawonline.com\/staging\/8350\/wp-content\/uploads\/2023\/03\/yellow-question-mark-200x300.jpg\")
To determine which bankruptcy type is best for your situation, consider the following factors:<\/span><\/p>\n\n
\nHere are some resources to help you rebuild your credit after bankruptcy:<\/span><\/p>\n\n
\nAfter filing for bankruptcy, it’s crucial to understand that credit score recovery is gradual. The time it takes to see improvements in your credit score will depend on factors such as your pre-bankruptcy credit history, the amount of discharged or repaid debt, and the bankruptcy type.<\/span><\/p>\n\n
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\nRebuilding your credit and maintaining financial stability after bankruptcy requires careful planning and discipline. Here are some tips to help you on your journey to economic recovery:<\/span><\/p>\n\n
\nBankruptcy is a complex process, and working with a\u00a0<\/span>trusted bankruptcy attorney<\/span><\/a> is essential. Our team of experienced lawyers can help you navigate the process and decide which bankruptcy type is right for you. We serve clients throughout North Carolina, including Charlotte<\/a><\/span>,\u00a0<\/span>Greensboro<\/span><\/a>,\u00a0<\/span>High Point<\/span><\/a>,\u00a0<\/span>Salisbury<\/span><\/a>, and\u00a0<\/span>Winston-Salem<\/span><\/a>.<\/span><\/p>\n
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\n[av_toggle title=’What is the difference between Chapter 7 and Chapter 13 bankruptcy?’ tags=” av_uid=’av-6bo5zxr’]
\nChapter 7 bankruptcy involves liquidating non-exempt assets to pay off debts. In contrast, Chapter 13 involves setting up a repayment plan to pay off a portion of your debts over three to five years.
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\n[av_toggle title=’Does bankruptcy always negatively affect my credit score?’ tags=” av_uid=’av-5qe7u6n’]
\nBoth Chapter 7 and Chapter 13 bankruptcies will negatively impact your credit score. However, the extent of the impact varies depending on your circumstances.
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\n[av_toggle title=’Which bankruptcy has a more significant impact on my credit score?’ tags=” av_uid=’av-56z2ii7′]
\nThe impact on your credit score depends on various factors, such as existing credit score, payment history, and the amount of discharged or repaid debt. Therefore, there may not always be a significant difference between the impact of Chapter 7 and Chapter 13 bankruptcies on your credit score.
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\n[av_toggle title=’How long does it take for my credit score to recover after bankruptcy?’ tags=” av_uid=’av-4t2ryvj’]
\nCredit score recovery is a gradual process and depends on factors like pre-bankruptcy credit history and the amount of discharged or repaid debt. For example, a Chapter 7 bankruptcy stays on your credit report for ten years, while a Chapter 13 bankruptcy stays for seven years. Still, improvements in your credit score can occur before these marks are removed. For more information on the impact of bankruptcy on your credit report, visit our\u00a0<\/span>bankruptcy and credit report<\/span><\/a>\u00a0page.<\/span>
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\n[av_toggle title=’What can I do to rebuild my credit after bankruptcy?’ tags=” av_uid=’av-4ezr83z’]
\nTo rebuild your credit after bankruptcy, create a budget, build an emergency fund, pay bills on time, use credit responsibly, and monitor your credit regularly.
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\n[av_toggle title=’Can I get new credit after filing for bankruptcy?’ tags=” av_uid=’av-3rc2n8v’]
\nYes, you can get new credit after bankruptcy, but obtaining it may be more challenging. You can start by applying for a secured credit card or a small loan to rebuild your credit.
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\n[av_toggle title=’Which bankruptcy type is better for keeping my home or other assets?’ tags=” av_uid=’av-3lkgslr’]
\nChapter 13 bankruptcy usually offers more flexibility in retaining property, as it involves a repayment plan to restructure your debts.
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\n[av_toggle title=’How can I decide which bankruptcy type is best for my situation?’ tags=” av_uid=’av-31gyua7′]
\nConsider your income, assets, debt types, and long-term financial goals. Then, consult an\u00a0<\/span>experienced bankruptcy attorney<\/span><\/a>\u00a0to help you make the best decision for your circumstances.<\/span>
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\n[av_toggle title=’Will my credit score improve after completing a Chapter 13 repayment plan?’ tags=” av_uid=’av-2gq2jvz’]
\nWhile completing a Chapter 13 repayment plan may help improve your credit score, the bankruptcy will remain on your credit report for seven years from the filing date. However, responsible financial behavior during and after the repayment plan can aid in credit score recovery.
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\n[av_toggle title=’How can I monitor my credit after bankruptcy?’ tags=” av_uid=’av-1w5fbcf’]
\nYou can request a free annual credit report from the three major credit bureaus. Additionally, you can use credit monitoring services to track your credit score and information, ensuring accurate reporting and alerting you to potential fraud.
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