Before filing for bankruptcy, it is important for you to understand what happens after bankruptcy has been filed. A bankruptcy can remain on your personal credit report for years, and your official credit score will more than likely remain low until you have begun rebuilding your credit. There are different types of bankruptcy, and which option you choose will affect how long it takes to rebuild your credit. This is why it is imperative to consult with a professional and experienced bankruptcy attorney before making the decision on whether or not to file.
Chapter 13 Bankruptcy
A filing for Chapter 13 bankruptcy will remain on your credit report for 7 years, and any debts that are discharged can remain on your credit report for up to 7 years after the discharge date. Since most debts remain active in a Chapter 13 bankruptcy until the end of your 3-5 year repayment plan, the discharged debts can actually remain on your credit report longer than the bankruptcy itself does.
Chapter 7 Bankruptcy
A completed filing for Chapter 7 bankruptcy can remain on your credit report for up to ten years. Furthermore, because all debts included in a Chapter 7 bankruptcy, are discharged within mere months of filing, they should be removed from your credit report a few years before the bankruptcy itself does.
Essentially, as the items associated with your bankruptcy on your credit report grow older, they will have less and less of an impact on your credit score, and it also affects how long it will take you to rebuild your credit. Before filing for bankruptcy, contact Bruce Mayrand, attorney at law, for assistance in determining the right option for you. In addition to filing for bankruptcy, I can also assist you with developing a plan for recovering from bankruptcy. Contact me today to request a consultation!