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FAQ: Bankruptcy and your credit report

On Behalf of | Nov 22, 2018 | Firm News |

Bankruptcy may be the course of action you need to take to get your financial standing in check. However, the impact of filing for bankruptcy follows you for quite some time. 

Bankruptcy results in a big hit to your credit report. Here are some of the most common questions people in Colorado have regarding bankruptcy. The accompanying answers should help put your mind at ease. 

How long does bankruptcy stay on credit reports?

Credit bureau Experian can help answer this question. People who file for Chapter 7 bankruptcy will have it remain on their records for 10 years before deletion. Individuals who file for Chapter 13 bankruptcy will have it stay on their records for seven years from the date of filing. 

Can you buy a house after bankruptcy?

Mortgage lenders certainly look at people’s credit scores before deciding whether to give a loan. You may not be able to purchase a home right away, but you can do a lot of good by rebuilding your credit score right away. Most people find they can buy homes between one and four years after discharging the bankruptcy. 

Can you still get credit after bankruptcy?

You can absolutely still apply for credit after filing. In fact, many people realize they can apply for credit within a few days of filing. However, it is paramount to be cautious of any offers you get during this time. Your mailbox may become filled with letters from banks to get you to sign up for a new credit card. These cards often come with high interest rates, so you need to be careful so you do not fall back into debt. 

How can you rebuild credit after bankruptcy?

You do not have to wait until your credit report deletes the bankruptcy. There are many ways you can build your credit score. You can review your report and find any irregularities to correct. You can also apply for a secured credit card you then pay off every month. 

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