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How Long Will Bankruptcy Stay On Your Credit Record? | St. Louis Bankruptcy Attorney

Many people considering bankruptcy in Missouri and Illinois are concerned that bankruptcy will be a black mark on their credit report forever. However, this is not the case at all. When it comes to consumer credit reports, which are often checked by banks, landlords, and employers, bankruptcy will stay on your report for up to ten years. Some credit report companies take bankruptcy off of your report after seven years.

Although your bankruptcy will continue to show up on your credit report and affect your credit score, however, most people who look up your credit score do more than look for a number. If you have done a commendable job at rebuilding your credit and staying in the black in the first two or three years after bankruptcy, most parties interested in your credit report will take notice of your increased fiscal responsibility. In fact, it is very possible to buy a car on credit or get a home loan before your bankruptcy disappears from your credit history.

Another aspect of your credit report that you should consider when you are thinking about bankruptcy is this: while bankruptcy will significantly lower your credit score for a number of years after filing, most people considering bankruptcy already have very poor credit scores. In many cases, filing for bankruptcy won't significantly lower your credit score if it is already low - but filing for bankruptcy may give you a chance to rebuild your credit either after a Chapter 13 reorganization or Chapter 7 liquidation bankruptcy.

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