How credit scores work

Question 1

Most people considering bankruptcy have a credit score between these numbers:

Answer 1

500 and 500 points

Question 2

What’s the lowest possible credit score?

Answer 2

300 points

Question 3

What’s the highest possible credit score?

Answer 3

850 points

Question 4

How long does a Chapter 7 bankruptcy stay on your credit report?

Answer 4

10 years

Question 5

How long does a Chapter 13 bankruptcy stay on your credit report?

Answer 5

7 years

Question 6

What’s a good way to think about a credit report after bankruptcy?

Answer 6

After you file for bankruptcy on a debt, all the information about late and missed payments for that debt will be deleted from your credit report. So those missed payments won’t drag your score down any more.

Question 7

What happens on your credit report if you “reaffirm” a secured debt like a car loan or mortgage?

Answer 7

All the information about late and missed payments for that particular debt will stay on your credit report. So if you have a lot of late or missed payments for a particular debt, you may not want to “reaffirm” that secured debt.