Can your credit score increase after declaring bankruptcy?

Surprisingly, the answer is yes. For some people credit scores actually increases after a bankruptcy.

Consumers who are on the verge of bankruptcy already have poor credit with late payments, high balances, and charged off accounts or collections accounts. When an individual declares bankruptcy, many of the collections and high balances are wiped clean leading to a potential increase in credit scores. But remember these scores are already significantly depressed so don’t look at bankruptcy as a way of increasing your score.

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