How long will bankruptcy show on my credit history?
Whether a debtor files a chapter 7 or 13 bankruptcy, the effect on the credit report will be the same. A bankruptcy will stay on a debtor's credit for 10 years. However, many of debtors find themselves getting credit offers within months of filing for bankruptcy.
There are two main reasons why creditors do this. (1) They know the debtor is about to have a large part of their debt discharged or will only have to pay back a small portion and (2) The debtor will be personally liable for the new debt because it will be several years before he or she can file for bankruptcy again. For larger purchases such as for homes and vehicles, it may take a bit longer to get lines of credit.
There are several ways to rebuild credit. The overall scheme to rebuilding your credit is to make payments on time to as many creditors as you can. Some examples are apartment leases (rent), utility bills, and small limit credit cards.
If you have questions about bankruptcy in general or alternatives to bankruptcy, please contact Jacksonville Bankruptcy Attorney.
Greg Gilbert
Keith Maynard
