"One month after filing, average credit scores rose 69 points"

Wow! I bet you didn't know that for most people, bankruptcy improves their credit score.

That's direct from a study that Lending Tree did in October 2024. (Ten years ago, two studies by the Federal Reserve had the same result. One study said, "Credit scores rebound quickly." The other study said, most people filing for bankruptcy have a "sharp boost in their credit scores.")

Some outfits try to scare you; to tell you that bankruptcy ruins your credit. And if you have a good score now, it will drop when you file. But few people file for bankruptcy when their credit is still good.

Here's what to know. Is your score now above 620? Then, when you file for bankruptcy, it will drop. Is your score below 600? Then, when you file, your score will go up.