How Long Does Bankruptcy Stay on a Credit Report?

    COLUMBUS, OH, September 19, 2023 /24-7PressRelease/ -- One of the concerns individuals often have is how long bankruptcy will remain on their credit report. The duration of time that bankruptcy stays on a credit report depends on the type of bankruptcy filed and the credit reporting agency's policies.

Chapter 7 Bankruptcy:
Chapter 7 bankruptcy can stay on a credit report for up to 10 years from the date of filing.

Chapter 13 Bankruptcy:
Chapter 13 bankruptcy, which involves a repayment plan, generally remains on a credit report for up to 7 years from the filing date.

It's worth noting that the credit reporting agencies—Equifax, Experian, and TransUnion—have their own policies regarding the duration of bankruptcy on credit reports. While the timelines mentioned above are common, it's essential to check with each agency to understand how long they will report your bankruptcy.

Many individuals assume that during or after the bankruptcy process, it may be challenging to obtain new credit, and any credit you do receive may come with higher interest rates or less favorable terms. Attorney Tom Fesenmyer advises, "Responsible financial behavior and a consistent track record of on-time payments can help improve your credit score, even with a bankruptcy on your credit report."

Here are a few tips:
1. Focus on Responsible Financial Behavior:
- Consistently make on-time payments for all your bills, including utilities, rent, and credit cards.
- Create a realistic budget that allows you to live within your means and make regular debt repayments.
2. Establish a Positive Credit History:
- Obtain a secured credit card. It requires a security deposit but can be used to demonstrate responsible credit usage and payment.
- Explore loans designed to help rebuild credit if you need a loan. Payments are made into a savings account, and once the loan is repaid, the funds become available to you.
3. Monitor Your Credit Report:
- Regularly review your credit report to ensure accuracy and identify any errors or discrepancies.
- If you find inaccuracies on your credit report, file a dispute with the credit reporting agencies to have them corrected.

As the bankruptcy ages, its impact gradually diminishes as your credit scores improves, and lenders may become more willing to extend credit on better terms.

About Fesenmyer Cousino Weinzimmer Law
Attorney Thomas M. Fesenmyer (Tom) and his partners Courtney Cousino and Danielle Weinzimmer serve Central and Southern Ohio, where they are committed to efficiently resolving clients' financial challenges. With vast experience and a track record of success, they adeptly handle cases involving Foreclosures, Repossessions, Wage Garnishments, Law Suits, Creditor Harassment, and Pay-Day Loans.

Contact FCW Law at 614-228-4435 (Columbus), 937-222-7472 (Dayton), or 877-654-5297 (Cincinnati).

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