Debt Questions

Does bankruptcy affect my credit rating?

By: Stan Hopkins

Yes. Once a person is in need of bankruptcy, they usually already have a poor credit rating. A person who has declared bankruptcy will be assigned the lowest credit rating. For a first time bankrupt this credit rating will continue to be reported for up to seven years and for second or more times, for up to fourteen years.

However, your credit report will also show your discharge from bankruptcy and any new credit information that occurs after bankruptcy. We provide information on how to rebuild your credit rating in the question below:

• How can I rebuild my credit rating after bankruptcy?

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