Your bankruptcy filing may be reported by your creditors on your credit report for up to 10 years depending on the credit reporting bureau. The good news is that your credit report indicates which debts were discharged in your bankruptcy and that there is a zero balance. Despite the 10 year reporting period most people can obtain credit soon after a bankruptcy. I am an Asheville bankruptcy attorney and in my practice I find that credit is usually available immediately after my clients receive a discharge.
Why is credit available so soon after bankruptcy? With a bankruptcy on your credit record, lenders will see that you have struggled with financial problems in the past; however, they also see that your debt-to-income ratio, a calculation showing how much your fixed monthly payments are in relation to your income, has improved substantially. Creditors like to see a larger gap between the amount of payments you make each month and your income because this indicates that you have greater disposable income and are less of a credit risk than before the bankruptcy.
Kight Law offers debt relief, including bankruptcy under chapter 7, chapter 11, and chapter 13; foreclosure defense; and debt settlement. In our experience, any of these procedures may impact your credit report. However, because credit can be repaired we always advise clients to make a decision about bankruptcy or other debt relief measures based on what will best help them move forward with their lives, not on the impact that a procedure will have on a credit report.