How long does a bankruptcy filing last on my credit report?
As many Southfield area residents know, a bankruptcy can hurt a person’s credit score. A credit score is an important indicator of a person’s credit worthiness and it can affect whether someone can buy a house, a car, or even get an apartment. Employers may also review a potential employee’s credit report. A person who has or is thinking about declaring bankruptcy may want to understand how their credit score will be affected.
Bankruptcy and credit reports
When a person files for bankruptcy it will appear on their credit score. The amount of time it stays on a person’s credit report varies on what type of bankruptcy was declared.
- Chapter 7 bankruptcy will stay on a person’s credit report for 10 years
- Chapter 13 bankruptcy will stay on a person’s credit report for 7 years.
The effect of bankruptcy on credit reports
Even though a bankruptcy can stay on a person’s credit report for up to a decade, its effects can diminish over time. After a person declares bankruptcy, they should take steps to rebuild their credit. Some tips for rebuilding a credit score after bankruptcy include:
- Review a credit report to make sure only the accounts that were part of the bankruptcy were discharged.
- Obtain a secured credit card and make all payments on time and in full.
- After bankruptcy period is up a person should review their credit reports and make sure the bankruptcy was removed.
Declaring bankruptcy does not mean the end of a person’s financial future. A legal professional who is skilled in bankruptcy understands that their client is going through some hard times. They can help their client create a fresh financial start that they deserve.