Saving My Credit
HOW DOES BANKRUPTCY AFFECT MY CREDIT
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Most individuals who are contemplating filing for Bankruptcy are doing so because their debt level has become unmanageable. It is not unusual for such individuals to be frequently late on their credit card and loan payments, or even seriously delinquent. These late payments, charge-offs, and delinquencies are reported to the major credit bureaus and stay on your credit report anywhere from seven to ten years.
The filing of Bankruptcy is also picked up by the major credit bureaus and stays on your credit report for ten years. However, the filing of Bankruptcy is not the end of the world. Most people find out that if they have a decent job, pay off their remaining debts (car loans, mortgage payments, etc.) in a timely manner, they can build up a good credit rating in a about two years. Lenders, specially credit card companies, know that once you receive your Discharge, you are no longer obligated to pay your pre-bankruptcy debts, and some of them are more than willing to give you a credit card even after the filing of Bankruptcy.
Note: None of the above is guaranteed. Individual credit ratings are based on overall credit history as well as income and assets, and it may be harder for some individuals to build and obtain credit than others.
