It’s a common belief that a bankruptcy will haunt your credit record forever. Many believe they will never be able to buy a home or obtain financing after a bankruptcy filing. However, by fulfilling the obligations of bankruptcy you take the initial step in rebuilding your credit, and again living within your means.
How will bankruptcy affect my credit?
Consider how much damage you were doing to your credit by falling behind, making partial payments, or just skipping them entirely. Filing bankruptcy can provide a clean slate for already damaged credit. You can face your accumulated debt, form a realistic plan and start fresh.
A clean credit history prior to any bankruptcy will minimize the impact. Though your credit report may reflect a filing for up to 10 years, and may even be able to finance a home within 2 years of the date of discharge from a Chapter 7 bankruptcy.
Getting a fresh start brings a surprising amount of opportunities to rebuild credit
Bankruptcy is not a death sentence. It is possible to reorganize your debts and regain the quality of life you enjoy.