If you have recently filed for bankruptcy, it was probably a difficult decision to make. Bankruptcy is not a step that anyone takes without much thought and consideration, and it's important to have a full understanding of the process before you make your decision to file.
Financial implications after filing a bankruptcy can be long lasting. While you are relieved of your debt, or you at least lessened the burden of the debt you had, you may not be fully aware of the long-lasting effects bankruptcy has on your financial life, specifically your credit report.
Bankruptcy and Your Credit Report
The exact amount of time it will take for you to recover from bankruptcy is dependent upon the type of bankruptcy you filed. If you filed for Chapter 7 bankruptcy, expect it to stay on your credit report for up to ten years. If you filed for Chapter 13, the bankruptcy is on your report for seven years.
Establishing New Credit
The good news is, there are some ways for you to improve your credit even when a bankruptcy remains on your report. Immediately after bankruptcy, you may find it difficult to obtain a loan, and when you do, the interest rate can be fairly high.
However, you can start to rebuild your credit by proving you can handle debt. You can open a secure credit card and timely pay your payments, preferably paying the balance in full every month. Also, any financing you do obtain should be paid on time.
If you are thinking about filing for bankruptcy or need more information regarding the process, you should speak with an experienced bankruptcy lawyer. To set up a consultation, contact us.
