O’Bryan Law Offices represents Bankruptcy clients throughout all of Kentucky and Southern Indiana. We offer in-person and video/telephone consultations for people so they can understand their financial options from the comfort of their own home.
Call now for a FREE consultation!
Search
Close this search box.

O'Bryan Blog

LOUISVILLE BANKRUPTCY ATTORNEY

How Can Bankruptcy Affect a Credit Report?

How Long Does a Bankruptcy Stay on Your Credit Report

While no one wants to file for bankruptcy, it can be a useful tool for some people to deal with overwhelming financial obligations. Filing for bankruptcy will likely negatively affect a person’s credit, but the good news is that the damage can be repaired.

How Long Does a Bankruptcy Stay on Your Credit Report?

Bankruptcies are public records and listed on credit reports. This is standard across the board for every state. As the go-to for Illinois & Kentucky bankruptcy claims, we often are asked, “How long does a bankruptcy stay on your credit report?” A Chapter 7 filing can appear for 10 years. A Chapter 13 bankruptcy usually stays for seven years but can remain up to 10 years if certain conditions aren’t followed.

What Does Bankruptcy Mean For Your Credit Report?

Before filing, debts such as medical bills, credit cards and more may appear as “unpaid” or “past due” along with the balance owed. For accounts included in a bankruptcy, they are listed on the credit report as “discharged” or “included in bankruptcy” with a zero balance.

Creditors will take that into account when someone applies for credit and may even deny the application. However, the good news is the accounts will no longer be reported as “unpaid” or “past due” which will help rebuild a person’s credit score.

Post-bankruptcy credit recovery

After a bankruptcy filing, it will take about two months for it to show up on a credit report. The report should be examined frequently for potential errors, which must be corrected. With responsible financial behavior, credit scores will slowly start to rise.

The decision to file for bankruptcy can be a difficult one. However, for some people, it can be a positive step to rebuilding their financial freedom. An experienced attorney here in Kentucky can detail the best options and dispel some common misconceptions over the impacts of a bankruptcy filing.

Contact Julie O’Bryan and her team of bankruptcy experts for your free consultation at 502-339-0222.

Facebook
Twitter
LinkedIn

Disclaimer: The use of the internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.