How Long Does Bankruptcy Appear on a Credit Report? 

Unfortunately, falling into financial trouble is easy, but climbing out of it is much more difficult. Whether medical bills, consumer spending, or another type of expense put you into debt, it can feel like it’s impossible to pay it all back. If you are in significant debt, you might feel like there is no solution and no way to get your finances back on track. 

Filing for bankruptcy could be the right option for you. By working with an experienced bankruptcy attorney, you can turn a new leaf in your financial life. At Schwartz, Hanna, Olsen, & Taus, P.C., we have a combined 80 years of legal experience. Our firm is proud to provide personalized services to each of our clients, and your case will be handled by one of our named partners. 

If you’re located in the New Jersey areas of Middlesex, Somerset, Morris, Passaic, Essex, and Bergen counties, or anywhere else in the state, contact Schwartz, Hanna, Olsen, & Taus, P.C. to discuss your financial situation and your legal options. 

Chapter 7 Bankruptcy 

When you’ve tried working directly with your creditors, consolidating your debt, and working with a credit counselor, but you still can’t manage your debt, you may want to consider filing Chapter 7 bankruptcy.  

When you file for Chapter 7 bankruptcy, your creditors will be temporarily stopped from most actions such as contacting you or taking collection actions against your property. However, you could lose some of your assets. Chapter 7 bankruptcy will remain on your credit report for 10 years after you file. Speak with an experienced bankruptcy attorney to learn how the law applies in your situation. 

Chapter 13 Bankruptcy 

Another option, if you are eligible, is to file for Chapter 13 bankruptcy. In a Chapter 13 bankruptcy filing, your debt will be restructured, and you will agree to a repayment plan. You will not be required to repay all your debts; however, priority debts, such as student loans and child support, will typically need to be paid in full. Chapter 13 bankruptcy will remain on your credit report for 7 years after you file. 

How Much Does a Bankruptcy Affect My Credit Score? 

Filing for bankruptcy will have a negative impact on your credit score, but it won’t last forever. How much your credit score will drop depends on your specific situation. Speak with an experienced bankruptcy attorney to learn more about bankruptcy’s impact on credit scores. 

Bankruptcy can stay on your credit report for up to 10 years after you file. However, over time, the impact of the bankruptcy on your credit score will decrease if you take steps to rebuild your credit. 

What Can I Do to Help My Score? 

You can take action to improve your score. Start by working to rebuild credit. Make all of your payments on time. You may want to consider applying for a secured credit card. Remember to keep your credit utilization below about 30%. 

It’s also extremely important that you check your credit report and make sure that there are no errors. Verify that only applicable accounts are included in your credit report. 

Once the 7 to 10 years have passed, review your credit report and check that the bankruptcy has been removed. 

Bankruptcy Guidance You Can Trust 

Filing for either Chapter 7 or Chapter 13 bankruptcy could be the right way to put your financial life back on track. Before you take this major step, consult with an experienced bankruptcy attorney. Our team of attorneys at Schwartz, Hanna, Olsen, & Taus, P.C. will work closely with you to understand your current financial situation and what would be the best path forward for you. If you’re located in the New Jersey areas of Middlesex, Somerset, Morris, Passaic, Essex, and Bergen Counties, or anywhere else in the state, contact our firm to schedule a free consultation.