Bankruptcy is a possible solution if you get into certain financial situations. However, it’s important to understand how bankruptcy will affect your credit report. Your credit report impacts how easily you can get credit in the future as well as how much interest you will pay on money that you borrow. Here are some things you need to know about bankruptcy and your credit report. If you have any questions or want to file bankruptcy, please contact our Atlanta bankruptcy attorneys by filling out an online form or calling one of our many offices.

Bankruptcies Stay for a Number of Years

Chapter 13 bankruptcies remain on your credit report for seven years, while Chapter 7 bankruptcies stay on your credit report for 10 years. The reason for the difference is that with a Chapter 13 bankruptcy, you pay some of the debt that you owe. None of the outstanding debt must be paid for a Chapter 7 bankruptcy. So just be prepared when you file for bankruptcy that it will show up on your credit report for a number of score and bankruptcy

Bankruptcies May Not Ruin Your Credit

It’s important to realize that many people who get into financial difficulties are forced into filing for bankruptcy. You may experience negative feelings about your financial capabilities after filing for bankruptcy, but you are not alone. It’s too easy to get into financial trouble and too hard to get out of it. That’s why bankruptcies exist in the first place. But creditors understand that people make mistakes early in life. Bankruptcies on your credit report aren’t great, but they don’t have to ruin your credit chances forever. Many creditors ask only that you wait a year or two before getting approved for a loan. That means that even though you have a bankruptcy on your credit report, your credit may still bounce back enough so that you can get approved for a car or house loan someday.

Keep Checking Your Credit Report

Bankruptcies are supposed to be automatically deleted from your credit report after seven or 10 years. However, in some cases, the bankruptcy remains after that time frame. That’s why it’s important to keep checking your credit report to ensure that your bankruptcy does in fact get deleted after a period of time has passed. If you check your credit report and discover that a bankruptcy that was supposed to be deleted is still on the report, file a dispute with all three credit reporting bureaus. They will investigate on your behalf and get the bankruptcy deleted if that is what is supposed to happen.

If you’re in financial trouble and you need a bankruptcy attorney to get some answers to your questions, please feel free to contact our offices. We’d be happy to help you better understand your bankruptcy options.