Is Bankruptcy Going to Destroy My Credit Score in Maryland?

 Posted on March 08, 2026 in Consumer Bankruptcy

Bankruptcy will hurt your credit score, but it won't destroy your financial future. According to the Consumer Financial Protection Bureau (CFPB), a bankruptcy can stay on your credit report for up to 10 years. That sounds scary, but it doesn't tell the whole story.

Many people who file for bankruptcy already have damaged credit from months of missed payments and mounting debt. For them, bankruptcy can actually be the first step toward rebuilding.

If you're weighing your options and wondering what filing would really mean for your credit in 2026, the Charles County, MD bankruptcy lawyer at Bloc One Services, LLC can help you understand the full picture before you decide.

Does Bankruptcy Immediately Destroy Your Credit Score?

You might be surprised to find that the drop isn't always as dramatic as you expect. If your credit score is already low because of late payments, collections, or maxed-out credit cards, filing for bankruptcy may not push it much further down. In some cases, people see their scores begin to stabilize or even improve shortly after filing because the debt weighing them down is finally being resolved.

If your credit was in good shape before things fell apart, the hit will likely be more significant – possibly 100 to 200 points. But even then, that drop isn't permanent. Your score can and does recover over time, especially when you take deliberate steps after your case is discharged.

What's the Difference Between Chapter 7 and Chapter 13 for Your Credit?

In Maryland, most individuals file under either Chapter 7 or Chapter 13 bankruptcy. Each works differently and affects your credit in its own way.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy, sometimes called liquidation bankruptcy, wipes out most unsecured debts, such as credit card and medical bills. It moves quickly, usually wrapping up in four to six months. The trade-off is that it stays on your credit report for 10 years from the filing date.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy, sometimes called a wage earner's plan, lets you keep your assets while repaying some or all of your debt through a three- to five-year payment plan. Because it involves a repayment commitment, it stays on your credit report for only seven years. There's another benefit: In many cases, making consistent payments during a Chapter 13 plan can help demonstrate responsible financial behavior over time.

Under 11 U.S.C. § 362, both types of bankruptcy trigger what's called an automatic stay. That's a court order that immediately stops most collection calls, lawsuits, wage garnishments, and foreclosure actions the moment you file. For many people, that relief alone is worth it.

How Long Does It Actually Take to Rebuild Your Credit After Bankruptcy?

Many bankruptcy filers start receiving credit offers within months of their discharge. Those first offers may come with higher interest rates, but they give you a chance to start building a positive payment history again.

Within two to three years of filing, many people reach credit scores in the 600s. Within four to five years, scores in the 650 to 700 range are realistic, sometimes higher, if you stay consistent.

The bankruptcy entry will still be visible on your report during that time, but lenders weigh recent behavior more heavily than old history. A bankruptcy from four years ago carries far less weight than one from four months ago.

What Can You Do To Rebuild Credit After Filing for Bankruptcy?

The steps are straightforward, but they require consistency:

• Open a secured credit card. You deposit a small amount as collateral, use the card for small purchases, and pay it off each month.
• Make every payment on time, every month. Payment history is the single biggest factor in your credit score.
• Keep your credit card balances low relative to your limit.
• Check your credit report regularly for errors, and dispute anything that looks wrong. Discharged debts should be marked as included in bankruptcy, not as unpaid.
• Avoid applying for multiple new credit accounts at once, since each application creates a hard inquiry that can temporarily lower your score.

Schedule a Consultation With Our Prince George’s County, MD Bankruptcy Attorney

If you're struggling with debt and worried about what bankruptcy would mean for your future, you don't have to figure it out alone. At Bloc One Services, LLC, we understand what it feels like to face financial hardship. Attorney Blocton is committed to providing the community with quality legal help at a fair and reasonable price.

Known as "The People's Attorney," this is someone who is in your corner and focused on real solutions that work for your situation. Call 240-200-0076 today to schedule a free 30-minute consultation with our Charles County, MD bankruptcy lawyer.