The Connection Between Bankruptcy Law and Your Credit ScoreMany people who file Chapter 7 or Chapter 13 bankruptcy are worried about how their credit score will be affected. Since bankruptcy law and credit are closely intertwined, this is a real concern. However, the way bankruptcy impacts one person’s credit score and the way it affects another’s may be entirely different. Often, the affect it has is dependent on the person’s credit before they filed for bankruptcy.

If you’ve read anything about bankruptcy law, you may be feeling a little overwhelmed about bouncing back after this legal process. However, this action is not permanent and will fade over time. In order to retain good credit after bankruptcy, you should:

  • Look over your credit reports to make sure they are up-to-date and do not have any errors.
  • Remember that bills account for a large portion of your credit score. Make sure you are paying them on time.
  • Think about what may have caused you to file bankruptcy in the first place and address these problems.
  • Not avoid using credit cards altogether. Instead, find ways to use them wisely (for example, only use them to pay your utility bills each month, and pay them off in full as soon as you receive the bill).
  • Think about applying for a loan after your credit score has improved a little bit.

By following these few tips, you may notice that your credit score starts to improve slowly but steadily. In addition to these guidelines, talk with an attorney who specializes in bankruptcy law to determine what you can do to ensure a bright financial outlook in the weeks, months, and years following bankruptcy.


Need help with bankruptcy law in Asheville NC? Contact us at Leonard & Moore, PLLC.  Our law firm has been in business since 1979, and we provide a variety of services to help you with your legal needs. Give us a call today.