5 Bankruptcy Myths Debunked

Myth #1: Having no negative information on your credit report prior to bankruptcy leads to a higher post-bankruptcy credit score than if your report contained derogatory information prior to the filing.

Fact #1: While intuitively this logic might make sense — better credit management prior to the bankruptcy means lower future credit risk? — the reality is that a positive payment history on an account prior to it being included in bankruptcy does very little toward minimizing the damage to your score. Simply the presence of bankruptcy information on the credit report and, most importantly, the length of time since the information first appeared, are the strongest determining factors.