Effects

Bankruptcy can lower a credit score of 680 by 130 to 150 points. If your credit score is 780, bankruptcy will knock off even more points. The number is 220 to 240 points.

Rebuild

You will have to apply for "bad credit", credit cards if you want to rebuild your credit. They come with a lot of fees and a high rate of interest. Secured credit cards also are available. This type of card is secured by a bank account. You open a bank account with, say, $300 to $500. When payments are late, they are taken from the bank account. Your initial deposit becomes the credit limit on your card.

Warning

When you consider foreclosures, tax liens, debt settlements and late payments, bankruptcy will affect your score, in a negative way, more than any of the aforementioned items.

Effects

When you apply for mortgages, credit cards and auto loans, your interest rate will be higher, and your payments will be higher as well. This means more money paid in finance charges.

Time Frame

A bankruptcy can remain on your credit file for 10 years. The longer a bankruptcy is on your credit report, the less damaging its affects. Eventually, new credit established after bankruptcy will begin to pull your credit score up.

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the effects on your credit score