How Bankruptcy Affects Your Credit (and How to Bounce Back)

Are you worried that bankruptcy will destroy your credit forever? Think again. In this episode of The Debt Hotline, Hannah sits down with Ben Jackson, co-founder of Upsolve, to debunk the biggest myths about bankruptcy and credit scores. Ben shares his personal journey from $60,000 in debt to homeownership—all thanks to filing Chapter 7 bankruptcy at age 29.Ben is the co-founder of Upsolve, the largest bankruptcy nonprofit in the US that's helped over 18,000 people file bankruptcy and protect nearly $1 billion in debt. He has personal experience using bankruptcy to build the financial foundation for his current success.Sued for debt? Use Solo to resolve it: https://www.solosuit.com/?utm=podcastConsidering bankruptcy? Get free help at upsolve.orgSolo's Dancin' in September Debt Payoff Giveaway: Enter for a chance to win $4,700 to help pay off your debt: https://www.solosuit.com/giveaway?utm_source=podcastIn this week's episode of The Debt Hotline, you'll learn:Why most people see little to no credit damage from filing bankruptcy (and some see immediate improvement)How Ben rebuilt his credit score from 650 to over 700 within 18 months of filing bankruptcyThe difference between Chapter 7 (fresh start) and Chapter 13 (repayment plan) bankruptcyWhy filing bankruptcy in your twenties can accelerate long-term wealth buildingHow Upsolve's free tool works like TurboTax for bankruptcy formsReal listener Q&A covering:Whether bankruptcy affects your spouse's credit (it doesn't, if you file individually)How to handle stipulated judgments and unexpected interest chargesFiling bankruptcy while living outside the USProtecting assets like retirement accounts and irrevocable trustsWhat can cause a Chapter 7 filing to be denied (spoiler: almost nothing)The bottom line: By the time most people consider bankruptcy, their credit is already damaged from late payments and high debt. Filing bankruptcy often stops the bleeding immediately and starts the healing process. Most Upsolve users reach the 600s within 1-2 years and the 700s within 2-3 years. Courts want you to succeed, and bankruptcy is a legal right designed for fresh starts, not a moral failing.Ben's story: At 29, Ben was drowning in $60,000 of credit card debt despite working 60-80 hours a week for Uber and Lyft. He almost filed the wrong type of bankruptcy and spent six months with stacks of paper, creating a fire hazard in his living room. Today, he owns a home, has a family, and runs a successful nonprofit—all because bankruptcy gave him the fresh start he needed.To submit a question to The Debt Hotline:Call 801-613-8181 and leave a voicemailFill out this form: https://forms.gle/28gd4XFsq6ybN4Qu8Send an email to [email protected]