Creditors that are discharged in bankruptcy do not have any legal basis to continue reporting any negative information in your credit report. This means that creditors who were discharged in bankruptcy should not report late payments, replenishment of vehicles and executions of a mortgage, which occurred after filing for bankruptcy. This can be a positive factor for people who have a long history of late payments and accounts that cannot pay on time, since this will allow you to begin rebuilding a credit history without creditors that are discharged in the bankruptcy report negative information in the future. 2. The amount of debt – the approval of the bankruptcy court, generally positively affects the amount of debt that you charge on your credit report. The debts that have been discharged in bankruptcy already are not valid obligations that you have, therefore these liabilities must be reported with a balance of $0 on the credit report. In some cases, approval of its bankruptcy, can result in an increase in your credit score, with the balances of your accounts to $0. 3 Credit history and mix of credit – as result of the Declaration of bankruptcy many of your credit accounts will be closed.
This will affect the time that an account has been opened and its mix of credit. In general, in my experience people that have declared bankruptcy, they have not had much difficulty obtaining new credit accounts, and consequently, in restore credit with a mix of different accounts. Although there is no easy answer on the impact that the bankruptcy has on your credit score, the positive side is that your credit score can recover from a bankruptcy and in some cases bankruptcy can improve your credit score. Your credit after bankruptcy score depends in large part on decisions made after the Declaration of bankruptcy and the credit history that decide to establish after his case. The most important consideration, is that after the Declaration of bankruptcy, in general you can re-establish your credit score at a level of moderate to good after 2 to 3 years to report a positive credit history. .