How long will a bankruptcy remain on my credit? This is a serious question. It’s only normal to ask this because people want to rebuild their credit as soon as possible.
Let’s talk about that.
How will bankruptcy affect my credit?
Think about it. If you’re at the point of needing a bankruptcy, then your credit report is probably about as bad as it can get. Chances are that charge-offs, garnishments, late payments, and foreclosures have already taken a significant toll on your credit.
Just after you file bankruptcy your credit score will drop. Then it will gradually start to rise and get better over time. Here’s why.
First, creditor will change the way they see you. Right now they see you as a person with a lot of unsecured debt that might file bankruptcy at any time. But after a bankruptcy they’ll begin to see you and someone with little or no unsecured debt (i.e., credit cards). They’ll realize you can’t file bankruptcy again for 8 years. That means you’re a good credit risk and you’ll probably start receiving credit card offers again.
Second, your debt-to-income ratio will greatly improve overnight.
How long does bankruptcy stay on my credit report?
The length of time your bankruptcy stays on your credit report varies for one credit reporting agency to the next. Here’s the general rule:
• A Chapter 7 bankruptcy remains on your report for 10 years from the date of filing.
• A Chapter 13 bankruptcy remains on your report for 7 years from the date of filing.
• Other negative information (i.e., late payments or charge-offs) can stay on your credit report for 7 years.
What should I do after filing bankruptcy?
First, you need to set a goal to start rebuilding your credit rating. That’s not as difficult and you may think.
The most important thing you can do to rebuild your credit is PAY YOUR BILLS ON TIME. Like someone has said: “It’s not bankruptcy that hurts your credit; it’s not paying your bills on time.”
Second, after you’ve received your bankruptcy discharge, you need to check with the 3 major credit bureaus at least once a year to make sure that your credit reports are correctly stated. If you find errors or debts that haven’t been removed, then write the credit bureau and point it out. Demand that they correct it.
Remember … the bankruptcy court doesn’t report any information directly to the credit bureaus. It’s your responsibility to do that.
Here’s how to get your free credit report
Did you know that recent federal law gives you the right to have one free credit report per year from each of the 3 major consumer credit reporting bureaus. Because each of the credit reporting agencies have different information you should check out all 3 and correct any errors on your reports.
To get your free credit report you can click on the following link
Here are the links to contact the 3 major credit bureaus directly for yourself.
Contact a bankruptcy attorney to learn more about how a bankruptcy may help you and how it will affect your credit.
Perhaps you have some questions. You can reach my by phone at 760-523-9090. Or just click on the ORANGE “Contact Me” button at the top of your screen. I’ll contact you back and make arrangements to meet with you.
Talk with me. I’ll treat you like a friend.
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