A Chapter 7 bankruptcy will stay on your credit for 10 years according to Experian, Transunion, and Equifax.  Many people thinking about filing bankruptcy wonder how their credit report will be affected.  Jackson, MS Bankruptcy Lawyer T.C. Rollins has filed thousands of bankruptcy cases and helped many people rebuild their credit.  

A Chapter 7 will stay on your credit for 10 years according to Experian. The bankruptcy itself is considered a negative event on your credit history, but the effect that it has will depend on the current state of your credit.  

If your credit is bad, then the bankruptcy will not hurt as much and can even improve your credit.  Once you receive a chapter 7 discharge (about 4 months after your file) a lot of negative information about your debts will be removed.  Removing the negative information about your debts will offset some of the negative effects that bankruptcy has on your credit score.

If your credit isn’t that bad when you file chapter 7, then the effect on your score will be bigger. Just because Experian, Transunion, and Equifax will remove the bankruptcy from your credit report after 10 years, that does not mean that the bankruptcy will be removed from all public reports. Filing bankruptcy is a public record and if someone searches in the right places they will be able to see your filing indefinitely.  Creditors use other companies besides Experian, Transunion, and Equifax to compile information on people.  Some of these other companies may list include the bankruptcy filing for longer than 10 years.  

Filing bankruptcy does not mean that you will never be able to get credit again.  It is possible to have good credit after filing bankruptcy.  Keeping a responsible amount of debt and paying it on time will build up your credit score over time.  

We see people that have filed bankruptcy receive credit after.  We have had clients apply for and obtain a mortgage while actively in a chapter 13 case. Make sure to talk to your lawyer prior to taking out a mortgage while in chapter 13. At the Rollins Law Firm, our Jackson bankruptcy attorneys have Mississippi clients that file bankruptcy and then take out a car loan. You may need to shop around, but there are usually companies out there that will lend money after a bankruptcy filing. If you have questions about filing bankruptcy or loan modifications, contact our Mississippi attorneys today!

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