How Will Bankruptcy Affect My Credit?

Many people are afraid of bankruptcy because of they are afraid it will permanently damage their credit. It is true that a Chapter 7 can remain on your credit report for ten years and a Chapter 13 can remain there for seven years. However, this does NOT mean that you will not be able able to obtain credit for 7-10 years. It only means that when a potential lender pulls your credit report, s/he will see that there was a bankruptcy in your_ past_. Your past is the key concept here. If, after you complete your bankruptcy, you rebuild your credit by taking small of amounts of debt and re-paying as agreed, your credit rating will improve and you will likely be offered additional credit.