How Long Does Bankruptcy Stay on Your Credit Report?

2 Years to 720 Credit Score After Filing For Bankruptcy

Filing for bankruptcy can be a challenging decision, but it can also be a fresh start. However, it’s crucial to comprehend how bankruptcy will impact your credit score. This is where our Honolulu debt relief law firm, Blake Goodman, P.C. can help you understand the nuances.

One question we hear from our clients is, How long does bankruptcy stay on your credit report? Unfortunately, the answer is 7 to 10 years, but you aren’t out of luck during that time. Here’s the good news. When you work with us, we aim to help you achieve a credit score of 700+ within just 1 to 2 years after filing for bankruptcy. This recovery time is shorter than you might expect, and it’s a key part of the support we provide to our clients, free of charge with every case we handle.

We offer a unique program, the “2 years to 720 Credit Score“, designed to guide you on the path to a healthier financial future. This program helps you to manage your finances effectively, understand your credit report, establish new credit, maintain timely bill payments, keep a low credit balance, diversify your credit, and avoid common credit pitfalls.

How Long Does Bankruptcy Affect Your Credit?

Your credit report details your payment history, loans, and current debt, among other financial details.

Lenders use credit reports to determine whether or not to provide credit or make a loan to you. They also use the reports to figure out how much interest they will charge you.

In general, the Fair Credit Reporting Act requires credit reporting agencies to remove most information about a bankruptcy case after 10 years.

However, the amount of time your credit report will show your bankruptcy depends on which chapter bankruptcy you file:

Chapter 7 Bankruptcy

In a Chapter 7 liquidation, you will not pay most creditors in full, so a Chapter 7 bankruptcy will stay on your credit report for 10 years.

Chapter 13 Bankruptcy

Because you must make repayments toward your debts in Chapter 13, credit reporting agencies may remove a Chapter 13 bankruptcy after seven years.

There is no way to accelerate bankruptcy removal from your credit report. Once you’ve filed, the information will remain for the specified period of years before being removed.

However, you can take steps to improve other aspects of your credit, like making on-time payments.

How Does Our Free “2 Years to a 720 Credit Score” Program Work?

Our program is designed to guide you through the recovery process after bankruptcy and help you improve your credit score. This program is intended to not only help you rebuild your credit in the short term but also put you on the path to never being in this situation again in the long term:

Lessons Included In Our Program: 

• What are the Basics of Credit? 

One of the primary areas we focus on in our program is education. Many people have a basic understanding that a high credit score is beneficial and a low credit score is detrimental. But not everyone understands what contributes to this score or what creditors are looking for when they check it. Understanding credit isn’t just about knowing when to pay your bills; it’s about understanding how your financial behaviors impact your overall score.

• How a Mortgage Can Help You Raise Your Credit 

Contrary to popular belief, filing for bankruptcy does not exclude you from the possibility of owning a home. In fact, some of our clients have qualified for homes while still going through the bankruptcy process. Mortgages and other large loans, such as car payments, can actually contribute positively to your credit score when managed properly.

Making regular, on-time payments can gradually improve your credit score. Even if you have a car payment or a mortgage, these aren’t seen as negatives until you start missing payments.

• Dealing with High-Interest Rates 

Yes, it’s true that after filing for bankruptcy, you’ll likely encounter higher interest rates. However, this is not a permanent situation. As part of our “2 Years to 720 Credit Score” program, we’ll guide you through this temporary phase.

Once you’ve shown a consistent payment history, you can refinance your high-interest loans, thereby lowering your interest rates. The best part? Refinancing these loans will also improve your credit score!

Get In Touch With a Leading Bankruptcy Attorney in Honolulu

We offer every client the opportunity to reach a 720 credit score within 1 to 2 years of filing for bankruptcy.

When you call Blake Goodman, P.C., a compassionate bankruptcy attorney will set you up with a free consultation where we’ll walk you through your options for debt relief.

If you’re struggling to pay the bills, contact us to start your debt relief journey.