Your Credit Report After Bankruptcy

By: Lily Mei

Bankruptcy is generally considered as a last resort for managing your debt because the credit results are long-lasting and hard to repair. A bankruptcy stays on your credit report for 10 years, making it extremely difficult to get credit, buy a home, get life insurance, and sometimes even get a job. However, under the federal law, it is a required legal procedure for people who want to get a fresh start from their debts.
It is a long-standing battle once you file for bankruptcy because even you file a bankruptcy and voluntarily dismiss it before the discharge, the credit reporting agency must report the dismissal as well as the bankruptcy filing. Therefore, your credit is still affected by the dismissal. That doesn’t mean you won’t receive new credit after bankruptcy, credit is still available but it may be more expensive than before with lower available limits. Rebuilding credit worthiness after bankruptcy is difficult and takes time. It is a matter of using the credit cautiously and paying it on time to slowly improve your credit score.

Sources:
http://www.creditreporting.com/bankruptcy-credit-report.html
http://www.doney.net/faq_credit.htm
http://www.cardratings.com/bankruptcyconsumercreditrights.html