Filing for bankruptcy may offer you immediate financial relief. However, it is an afterthought for many debtors about how it will impact their financial capabilities moving forward. That is, bankruptcy may automatically drop your credit score and appear on your credit report. This may affect your borrowing ability for many of life’s milestones, such as purchasing a home. While this may sound unideal, you must understand that this is not a permanent burden you will deal with. That said, please continue reading to learn how long your bankruptcy filing will remain on your credit report and how an experienced Rockland County bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq., P.C., can help you improve your credit with alternative methods.
How long will a bankruptcy filing stay on my credit report?
Of note, the Fair Credit Reporting Act (FCRA) governs how long negative information, like a bankruptcy filing, should remain on a credit report. And so, generally speaking, your Chapter 7 bankruptcy filing may appear for 10 years, while your Chapter 13 bankruptcy may be disclosed for seven years. This extended timeline was determined to be reasonable and fit for the sake of lenders. That is, the sooner you apply for a loan after bankruptcy, the less borrowing responsibility you may espouse and subsequently the higher risk profile you may possess.
Will all my debts be removed from my credit report after filing for bankruptcy?
You may assume that even though your bankruptcy filing will be added to your credit report, your past debts may be removed. However, your credit report errs on the side of accuracy and still includes your past debts, but states them as “discharged” or “included in bankruptcy.” At least here, though, they no longer appear as active or delinquent debts. Of course, the debts determined as non-dischargeable in your bankruptcy proceedings, like taxes, domestic support, and student loans, will still be reported.
Is it possible to remove a bankruptcy filing from my credit report early?
Unfortunately, it is very rare to be able to remove your bankruptcy filing from your credit report before these seven to 10 years are reached. But we still encourage you to look through your report frequently and closely. This is so you may identify and formally dispute any errors that are potentially hurting your credit score even more. For example, your credit report may have the wrong bankruptcy filing date, which would mean this will stay on your credit report for longer than it should.
At the end of the day, if you are still hesitant about taking the monumental step of filing for bankruptcy, consult with a skilled Rockland County bankruptcy attorney from The Law Offices of Allen A. Kolber, Esq., P.C., to get the assurance and confidence you need to proceed. From here on out, we will be with you every step of the way.
