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Student Question

Secondary V • 2yr.

Hi,

Will personal bankruptcy necessarily lower your credit score or could it just negatively impact it?

Thanks !

Financial Education
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Explanations (1)

  • Explanation from Alloprof

    Explanation from Alloprof

    This Explanation was submitted by a member of the Alloprof team.

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    Team Alloprof • 2yr.

    Hi AdmirableStork6905,

    Thank you for your question!

    A personal bankruptcy will lower the credit score to its lowest tier for at least 6 years after the bankruptcy. However, it is possible to get it back up if good habits are developed over time. It takes a lot of time to get back up, but it is definitely worth it as a credit card is a useful tool if used correctly.

    Hope that answers your question!

    Anthony B.

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