If you are thinking about bankruptcy, you have most like wondered how long it will stay on your credit report.
Many people think that bankruptcy is the end of their financial road, and that any future financial success is impossible.
As a result, we receive questions about the best ways to move forward after bankruptcy. Specifically we’re asked, “How long does bankruptcy stay on your credit report?”
While bankruptcy does have an impact on your credit report and score, it doesn’t last forever.
So, it is very possible to move on and rebuild after the bankruptcy process.
To help clear things up, we’ll explore what happens to your credit score after bankruptcy, how long it stays on your credit report, and outline a few basic tips for a fresh financial start.
Credit scores are generated based on available information on your credit report. This means that a it will affect your credit score as long as it still appears on your report.
Once a bankruptcy is completely removed from your report, you will begin seeing improvement in your score.
Chapter 7 and Chapter 13 are the two categories of bankruptcies that consumers can file. Each stays on your credit report for a slightly different duration.
Chapter 7 bankruptcy remains on your credit report for 10 years. After this time, the bankruptcy and any related accounts will be removed automatically.
This length of time is due to the fact that the debt is not repaid.
Chapter 13 bankruptcy should disappear from your credit report after 7 years.
Because you agree to a 3 to 5-year repayment plan as a part of chapter 13 bankruptcy, accounts that were delinquent before the official bankruptcy filing may be removed from your credit report sooner than 7 years.
Just because bankruptcy stays on your credit report for a number of years does not mean you cannot immediately start taking steps towards rebuilding your credit.
Clients have many options to start rebuilding their credit score after bankruptcy, including:
At Parker & DuFresne, we believe there is life after bankruptcy.
Our goal is to get clients in Jacksonville, FL and the surrounding areas back on track as quickly as possible, which is why we offer our clients a free credit rebuilding program.
This program is valued at over $1,000. It has helped our clients restore their credit in just 12-24 months after bankruptcy.
Our credit rebuilding program is specifically tailored for our post-bankruptcy clients.
By completing it, you’ll learn how to:
We want to give you the knowledge, tools, and motivation to rebuild your financial future.
If you are thinking about filing, and would like more information on how long bankruptcy stays on your credit report, and how it will affect your credit score, contact us today.
Parker and DuFresne