Bankruptcy is something most people do not take lightly, and if you have a good credit score, it’s likely that you have been diligent with your money in the past. In some cases, unforeseen circumstances, like a major medical event, can force people with good credit scores to consider bankruptcy.
Bankruptcies can affect access to new credit cards, car and home loans, and potentially hurt job opportunities. They can also be very tough to deal with emotionally. Despite that, over a million people file for bankruptcy on average every year. Bankruptcies can remain on your credit report for up to 10 years and can knock hundreds of points off your credit score. However, there are steps you can take to boost your credit score and improve it to the point you qualify for loans again, even before the bankruptcy drops off your credit report.