Why am I writing about this again? Because I still hear it so often it seems like the word just isn't getting out there. What's the reality of filing bankruptcy and your credit rating?
• Yes, a Chapter 7 bankruptcy (the one that gets rid of your debts quickly) will be on your credit reports for 10 years. BUT…
• After you get your discharge of debts, those "bad marks" for late payments go away.
• If you then use credit and pay your bills on time, your credit score will increase.
• For example, many of my clients have obtained car loans within 1 1/2 to two years after the bankruptcy.