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How Does Bankruptcy Affect Your Credit Score in Texas

By Javier Aponte | April 3, 2025 |

Why Is Bankruptcy Such a Big Deal for Your Credit Score?

Filing for bankruptcy in Texas is a legal lifeline for those drowning in debt—but it’s also a major blow to your credit score. Depending on your credit profile, your score could drop by 130 to 240 points. Whether you file for Chapter 7 or Chapter 13, bankruptcy remains on your report for 7 to 10 years.

But here’s the thing: It’s not the end of your financial life. It’s a reset button—and with the right moves, you can bounce back faster than you think.

What’s the Impact of Bankruptcy on Your Credit Score?

Chapter 7: stays on your credit report for 10 years and may drop your score by 130–240 points
Chapter 13: remains for 7 years with a similar score impact

Your score dip depends on your credit standing before bankruptcy. Ironically, if you already had poor credit, the impact might be less severe. But if your credit was good or excellent, expect a sharper decline.

Quick Tip: Missing payments and maxing out cards hurt more in the long run than bankruptcy itself

How Can Texans Rebuild Their Credit After Bankruptcy?

Ready for your post-bankruptcy glow-up? Here are five credit recovery strategies that work in Texas:

  1. Get a secured credit card
    Use it sparingly, pay in full monthly, and watch your score rise

  2. Stick to a budget
    Use tools like Mint or You Need a Budget to stay on track

  3. Monitor your credit
    Use AnnualCreditReport.com to check for errors that can delay recovery

  4. Diversify your credit mix
    Add small installment loans or consider a credit-builder loan from a Texas credit union

  5. Work with legal experts
    Learn how Kisch Consumer Law helps Texans rebuild their financial foundation

What’s the Best Way to Recover Credit After Bankruptcy in Texas?

Here’s a step-by-step checklist just for Texans:

Can Bankruptcy Ever Help Your Credit in the Long Run?

Surprisingly, yes. Filing for bankruptcy can:

  • Stop further delinquencies from piling up

  • Reset your debt-to-income ratio

  • Offer breathing room to build better financial habits

Think of it as financial spring cleaning: painful but necessary

What Texans Ask Most About Bankruptcy and Credit

How long does bankruptcy stay on my credit in Texas?
Chapter 7 stays for 10 years; Chapter 13 for 7 years

Can I get a mortgage after bankruptcy in Texas?
Yes—usually after 2 years with FHA loans, if you’ve rebuilt credit

Will all my debts be wiped clean?
No. Some debts—like student loans or child support—typically survive bankruptcy

Is it possible to rebuild my credit in less than 2 years?
Absolutely, with the right strategy and consistency

Where can I get help with credit recovery in Texas?
Start with Kisch Consumer Law for personalized legal guidance

Why Choose Kisch Consumer Law for Credit Recovery in Texas?

If you’re navigating bankruptcy, don’t go it alone. The team at Kisch Consumer Law offers:

  • Personalized credit recovery strategies

  • Legal support tailored to Texas bankruptcy laws

  • Resources for long-term financial health

They don’t just handle paperwork—they help you build your comeback story

Let’s Get Real: Bankruptcy Isn’t the End—It’s a Reboot

So, your credit score took a hit. Join the club. In Texas, bankruptcy isn’t a scarlet letter—it’s a fresh financial passport. If you play your cards right, your score won’t just recover—it’ll thrive.

Visit Kisch Consumer Law to start building your personalized, data-driven recovery plan today

Or as we like to say around here: Dust yourself off, check your credit report, and strut into that financial future like a Texan in new boots.

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