The Huggins Law Firm, PA

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Columbia 803-764-9921 Toll Free 866-691-3808

About Our Bankruptcy Practice

We will guide you safely toward solid financial ground using the option that makes the most sense for you.

Meet Attorney J. Steven Huggins

Be confident knowing that you will be represented by an attorney and a team that spends every day handing cases like yours.

How much does bankruptcy actually lower a credit score?

When South Carolina residents file for bankruptcy, their credit score is negatively affected. How much of a hit is taken depends upon certain factors.

A Chapter 7 bankruptcy can remain on someone's credit report for up to 10 years. Bankruptcy immediately lowers a credit score by possibly hundreds of points. How much damage is done to a credit score depends on how high it was before the bankruptcy. Generally, the higher a person's credit score is, the bigger the hit it will take when they file for bankruptcy. Therefore, even people with a high credit score can lose enough points to give them a below average score. Eventually, their credit can begin to rebound, but they will need to demonstrate an ability to pay on time by obtaining a loan or getting a credit card. When a low credit score makes that difficult or impossible, a secured credit card is often a viable solution.

Additionally, people who are beginning the process of rebuilding their credit may benefit from checking their credit report for errors. All debt discharged by a bankruptcy should be shown with a zero balance, and if 10 years has passed, the bankruptcy itself should no longer be on the report. If it is or if there are any errors, it can be disputed by contacting the credit reporting bureaus.

A Chapter 7 bankruptcy discharges most unsecured debt such as credit cards and medical bills, though other types of obligations remain intact. Filing also puts at least a temporary halt to collection activities and harassment from creditors. There are a variety of eligibility and other requirements that an attorney can outline.

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The Huggins Law Firm, PA

The Huggins Law Firm, PA 1812 Lincoln Street, Suite 201 Columbia, SC 29201 Phone: 803-764-9921 Toll-Free: 866-691-3808 Fax: 803-764-1563