How long does a bankruptcy appear for on my credit file?
Negative information like a bankruptcy can appear on credit file for up to 10 years from the date you filed for bankruptcy.
Chapter 7 Bankruptcy
Most people have heard about Chapter 7. This type of Bankruptcy allows you to eliminate most of your consumer debts. For example: credit cards, medical bills, personal loans, etc. It also stops your creditors from trying to collect on your debt.
At the end of the bankruptcy process, most of your debt (in some cases all the debt) is discharged, which means you do not have to pay it back.
As good as it sounds Chapter 7 Bankruptcy is not for everyone. The best way to determine if Bankruptcy is the right solution for you is to speak to a bankruptcy attorney.
Chapter 13 Bankruptcy
This type of Bankruptcy works basically as a repayment plan. You are allowed to keep your property and use your income to pay off your debt within 3-5 years based on the terms of a repayment plan. A lot of people file for Chapter 13 Bankruptcy in order to get back on track with the original loans, or pay off tax liens.
If you are making payments under a Chapter 13 Bankruptcy and your financial situation has changed due to a lay off, you have the right switch to Chapter 7 Bankruptcy. Speak with your Bankruptcy attorney for more information.
Credit Score Impact
Filing for Bankruptcy will drastically lower your credit score, especially if you had an impeccable credit history and high FICO score. On the other hand if you had collections, late payments, and other negative items listed on your credit report, the FICO score will drop may be insignificant.
If after speaking with your bankruptcy attorney you decide that filing for Bankruptcy (Chapter 7 or Chapter 13) is the best option in your situation, you may start rebuilding your credit right after your bankruptcy is discharged.
Credit Firm has helped thousands of clients delete Bankruptcy accounts from credit reports. If you have a Bankruptcy account or accounts reported as “included in bankruptcy” reporting on your credit report, contact Credit Firm to improve your credit and boost your credit score.