Will filing chapter 7 bankruptcy affect my credit?


Yes. All events affecting your credit are recorded. That includes prompt payments, slow pays, charge-offs, and judgments as well as a bankruptcy filing. On the other hand, if you are currently contemplating bankruptcy, then it is likely that your current credit rating has already been negatively impacted.

While record of your bankruptcy filing may show on your credit report for up to 10 years, the reality is that most people find they are able to completely rebuild their credit within 3 years. Depending upon the lender and the reason for incurring new debt, your ability to obtain credit will likely improve shortly after you receive your chapter 7 discharge. If for no other reason than the fact that your financial condition has been dramatically improved. However it is up to you to make sure you rebuild and maintain your credit rating. If you fail to make steady, regular payments on new or reaffirmed debts you will likely make a bad situation worse.