{"id":286818,"date":"2021-01-27T10:18:12","date_gmt":"2021-01-27T15:18:12","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/bankruptcy\/after-bankruptcy\/how-soon-will-my-credit-score-improve-after-bankruptcy.html"},"modified":"2025-08-05T13:50:20","modified_gmt":"2025-08-05T18:50:20","slug":"how-soon-will-my-credit-score-improve-after-bankruptcy","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/bankruptcy\/after-bankruptcy\/how-soon-will-my-credit-score-improve-after-bankruptcy.html","title":{"rendered":"How Soon Will My Credit Score Improve After Bankruptcy?"},"content":{"rendered":"\n
\n

How Soon Will My Credit Score Improve After Bankruptcy?<\/h1>\n\n
\n
\n By Christie Nicholson, J.D.<\/a> | Legally reviewed by Jordan Walker, J.D.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
\n

This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
\n

The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

\n
\n
\n

Key Takeaways<\/h2>\n

Filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy can significantly impact your credit score, but it also offers a path to financial recovery. Most people see improvements in their credit score within 12 to 18 months after a bankruptcy filing, provided they adopt responsible credit habits. The exact timeline for credit score recovery varies based on individual circumstances and the type of bankruptcy filed.\u00a0Diligent efforts, such as making on-time payments, monitoring your credit, and gradually rebuilding credit through secured cards or loans, can help your score move from a poor to a fair range within a year or two after discharge. Ultimately, while bankruptcy remains on your credit report for several years, its negative effect lessens over time as you demonstrate better financial management.<\/i><\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

In this article, we explain what happens to your credit score after the courts discharge your bankruptcy, how long it takes your credit score to improve, and ways you can improve your credit score after bankruptcy.<\/p>\n

If you’re considering bankruptcy or have already filed, consult a\u00a0skilled bankruptcy attorney<\/a>. We’ve also provided links to FindLaw articles on related topics at the bottom of the page.<\/p>\n

The Short Answer to a Complex Question<\/h2>\n

While we’ll\u00a0provide more details about how to\u00a0rebuild\u00a0credit after your bankruptcy is complete later in the article, let’s address the question we opened with –\u00a0\u00a0How soon will your\u00a0credit improve after bankruptcy?<\/p>\n

The short answer is that your credit score typically takes 12 to 18 months to bounce back after a bankruptcy filing. If you take the proper steps, most people will see some improvement after one year.<\/p>\n

In the 12-18 months following your bankruptcy, your FICO credit report can improve from bad credit (poor credit is traditionally less than 579) back to the fair range (580-669). Of course, this only happens if you change your credit habits.<\/p>\n

You will eventually get there if you work to achieve a good credit score immediately after the courts discharge your bankruptcy. If you start acquiring massive debt again\u00a0in the months following your bankruptcy, this won’t happen.<\/p>\n

If you are persistent about improving your credit and accept that it’s a gradual process, you may have a much better credit score within a couple of years of filing bankruptcy.<\/p>\n

Bankruptcy Affects People With Good Credit More Than Those with Bad Credit<\/h2>\n

Some people assume that everybody who files for bankruptcy has terrible credit. That is not the case. Bankruptcy is a financial tool for all debtors, regardless of their credit score.<\/p>\n

It makes sense that people with excellent credit would be able to pay their debts. They may have more money in their savings account than people with bad credit. However, that doesn’t mean people with good credit don’t file bankruptcy.<\/p>\n

A person’s credit score may dictate the type of bankruptcy they file. For example, if you have a lot of debt that you pay regularly, your Experian score will be high. At the same time, owing a lot of money makes a person more likely to file bankruptcy.<\/p>\n

When someone with a high FICO score files for bankruptcy, their score takes a hit. Regardless of which type of bankruptcy you file, the bankruptcy cannot go through until you’ve gone 90 days without paying your creditors. This means that accounts reporting positive activity for years will start to report negative activity.<\/p>\n

A person with bad credit already has negative activity on their credit report, and little changes when they decide to file for bankruptcy. Many debtors who opt for Chapter 7 bankruptcy already have accounts in default. Not making payments for three to six months will not impact their credit much.<\/p>\n

Just How Much Will Your Credit Score Drop?<\/h2>\n

One concern many debtors have is that a bankruptcy will have a negative impact on their credit score. While this is unfortunate, it is unavoidable. The question is, how much will your credit score drop?<\/p>\n

It’s impossible to say precisely how significantly a bankruptcy will impact your credit score. It depends on several factors, such as:<\/p>\n