Life After Filing

Here is the rough arc of recovery after bankruptcy:

• Year 1: Your credit score drops sharply, but secured credit cards are available almost right away.
• Year 2-3: With steady on-time payments, scores climb back toward fair territory and car loans become possible again.
• Year 4-5: Many filers requalify for a mortgage, including FHA loans.
• Year 7-10: The filing falls off your credit report entirely.

The stigma in your own head usually lasts longer than the real financial hit. The most common regret filers report is waiting too long, not filing too soon.