Chapter 7 bankruptcy can remain on your credit report for up to ten years, meanwhile Chapter 13 can remain on there for seven years. However the impact of the bankruptcy does lessen over time and there are things you can do to help minimize the damage.
Chapter 7 Bankruptcy
When you file Chapter 7, you will most likely have to wait the full ten years before it comes off your credit report. Discharged debts will be listed as such, though they will fall from your credit report after seven years from the filing date, unless they were already delinquent, in which case, it may be sooner.
Chapter 13 Bankruptcy
A finalized Chapter 13 bankruptcy and the accounts will drop off your credit report seven years after you filed, unless they were already delinquent, in which case, it may be sooner. Chapter 13 is often looked more favorably upon because there is usually a payment of at least some of the debt.
Once the bankruptcy has been removed from your credit report, your scores should begin to upturn, even more so when you pay your bills on time and in full and utilize credit in a responsible way. Filing for bankruptcy is not an easy path though it may be right for some. If you can commit to using credit in a responsible manner following your bankruptcy, you can rebuild it while awaiting the bankruptcy debts to fall away from the credit report.
Speak With Our Bankruptcy Lawyers In Phoenix & Scottsdale
Canterbury Law Group should be your first choice for any bankruptcy evaluation. Our experienced professionals will work with you to obtain the best possible outcome. You can on the firm to represent you well so you can move on with your life. Call today for an initial consultation. We can assist with all types of bankruptcies including Business Bankruptcy, Chapter 7 Bankruptcy, Creditor Representation, Chapter 5 Claims, Chapter 13 Bankruptcy, Business Restructuring, Chapter 11 Bankruptcy, and more.
*This information is not intended to be legal advice. Please contact Canterbury Law Group today to learn more about your personal legal needs.