Bankruptcy can remain on your credit report for a significant period, depending on the type of bankruptcy you filed.
COLUMBUS, OH, October 12, 2023 /24-7PressRelease/ — The two most common types of bankruptcy for individuals are Chapter 7 and Chapter 13 bankruptcy. Here’s how long each type of bankruptcy stays on your credit report:
Chapter 7 Bankruptcy: Also known as “liquidation” bankruptcy, stays on your credit report for ten years from the date of filing.
Chapter 13 Bankruptcy: Also called “reorganization” bankruptcy, stays on your credit report for seven years from the date of filing.
During the time bankruptcy is on your credit report, it can have a negative impact on your credit score and ability to obtain new credit or loans. However, since bankruptcy eliminates most or all of your debt, your score will improve after filing as you rebuild your credit history and demonstrate responsible financial behavior.
It’s essential to focus on improving your credit after bankruptcy by managing your finances responsibly, making on-time payments, and using credit wisely. With good financial habits, you can rebuild your credit score and improve your overall creditworthiness.
Many individuals find that they can start rebuilding their credit relatively quickly after bankruptcy. One way to begin the process is by obtaining a secured credit card or a small personal loan with a co-signer or collateral. Making timely payments on these accounts can help demonstrate responsible financial behavior to potential lenders.
Keeping credit card balances low relative to their limits can gradually improve your credit score, as well. It is crucial to maintain a good credit history by managing your finances wisely, avoiding late payments, and not taking on excessive debt.
It’s important to remember that bankruptcy is not a permanent stain on your credit, and with patience, diligence, and responsible financial practices, you can rebuild your credit and regain financial footing.
“Bankruptcy is not for everyone, but if it is right for your situation, it can put you on the road to financial recovery before long,” says Thomas Fesenmyer of FCW Law Firm.
About FCW Law
FCW Legal offers personalized debt-relief evaluations and counsel, covering Chapter 7 bankruptcy, Chapter 13 debt reorganization, debt settlement negotiations, and foreclosure defense. Their dedicated team of attorneys provides compassionate and skillful guidance, tailoring solutions to each client’s unique needs for achieving financial freedom promptly. For more information, call 614-228-4435 (Columbus), 937-222-7472 (Dayton), or 877-654-5297 (Cincinnati)or visit the website.
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