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How long will my bankruptcy show on my credit record?

After filing for bankruptcy, many people are concerned about how it can affect their credit report. The most common concerns are whether someone will be able to get a mortgage or car loan if there is a bankruptcy in their credit history. Although bankruptcy does have a negative effect on credit at first by lowering the score, it doesn't hurt your credit forever. 

Bankruptcy will stay on credit reports for a specified period of time depending on which chapter you file:

  • Chapter 7: Expect Chapter 7 bankruptcy to be reported to credit bureaus for 10 years
  • Chapter 13: Expect Chapter 13 bankruptcy to be reported to credit bureaus for 7 years

While a bankruptcy does stay on credit reports for several years, you can begin to rebuild your credit as soon as your bankruptcy is discharged. Over time, the negative effect does diminish, and most people are able to be approved for loans if they can remain debt-free.

How Can I Rebuild My Credit After Bankruptcy?

Once your bankruptcy is discharged your credit score will increase because your debt to income ratio improves. Many banks now offer "secured" credit cards where you deposit a certain amount of money that will guarantee the credit card. By starting small and paying for your charges each month, you will begin rebuilding your credit history. 

Many debtors are able to rebuild their credit and qualify for a home loan in as little as 2 years, and some in possibly even 1 year.

Call our office to schedule your free first visit so we can help you get a clean start. We have offices in Springdale, Rogers, and Fayetteville for your convenience.