Credit After Bankruptcy
A Chapter 7 bankruptcy will stay on your credit report for 10 years from the
date of filing. A Chapter 13 will stay on your report for seven years from
when it is filed. We get asked all the time something like, "So, my credit
will be wiped out for 10 (or 7) years after bankruptcy?" The answer is no.
After bankruptcy, you will have a bad mark on your credit report, but it does
make your credit report disappear. You will still have a credit score.
Immediately after a bankruptcy it will be quite bad. However, many people
considering bankruptcy have already skipped debt payments--sometimes for
multiple debts for many months--so this doesn't make a difference.
The good news is that credit can be rebuilt after bankruptcy, even during the
period that the bankruptcy is on your credit report. You do this by taking
out some new debts after bankruptcy and paying as agreed. A small credit
card or two will do just fine. What happens is that over time this
positive activity starts to have a greater weight than the older bad stuff.
Accuracy in Credit Reporting:
After your bankruptcy case, some creditors will nonetheless continue to report
to the credit reporting agencies that you owe a debt. After you receive a bankruptcy discharge, however,
you no longer owe discharged debts. Reporting inaccuracies like this can
harm your credit and prevent you from building up your credit score after
bankruptcy.
When a client receives a bankruptcy discharge, we ask them
whether they are interested in obtaining copies of their credit reports and
taking the steps necessary to ensure maximum accuracy. If a client chooses to
proceed, we provide the client with the information they need to dispute any
inaccuracies due to the bankruptcy. If
the inaccuracies are not corrected because the credit reporting agencies or your former creditors do
not handle your dispute in the right way, we will discuss with the client the possibility of filing suit under the Fair
Credit Reporting Act. After a successful settlement or verdict under this law,
you would usually receive money damages and have the incorrect item removed from your report.
The attorney's fees in a successful settlement or verdict are paid for by the defendants.
| 
Home
