Filing for bankruptcy can be a smart move when you need a fresh financial start. However, you should know that there will be consequences for filing, including a hit to your credit score. Some clients ask if they can remove bankruptcy from their credit report, but it’s not that simple. A Rockland County Chapter 13 bankruptcy lawyer can tell you more.
Can I Remove Bankruptcy From My Credit Report?
Filing for bankruptcy will put a dent in your credit score. That filing will also be there on your credit report for a while, so anyone looking into your credit can see it. This includes landlords, mortgage companies, and any company you ask for a loan or line of credit.
Unfortunately, you cannot just ask to have your bankruptcy removed from a credit report. It stays on there for a set amount of time and can continue to affect your credit for years. This is why it’s so important to carefully consider all of your options before filing.
How Long Does it Take to Remove Bankruptcy From a Credit Report?
How long your bankruptcy can stay on a credit report often depends on which kind of bankruptcy was filed. A Chapter 7 bankruptcy, one where you liquidate assets to pay off your debts, can stay on a report for seven to ten years. A Chapter 13 bankruptcy requires you to make a payment plan with your creditors and usually stays on your report for around seven years. That timer starts ticking down from when you file, not from when your payment plan is completed.
How Can I Rebuild My Credit?
Fortunately, there are some smart ways to strengthen a credit report after filing for bankruptcy. You can:
Apply for a secured credit card: This kind of card has a low limit and comes backed by your own cash deposit. So there’s little risk to a lender, but you can charge items and make on-time payments that can boost your score.
Become an authorized user: Becoming an authorized user on someone else’s card can help your credit too, but this is rarely a major influence.
Have someone co-sign a loan: It can be hard to get a loan on your own, but someone with good credit can help you out by co-signing one with you. Then you can make on-time payments and boost your own score.
Do I Need a Lawyer to File For Bankruptcy?
Hiring a lawyer is advised when filing for bankruptcy. This is a paperwork-intensive process and any mistakes can cause delays and other issues. Your lawyer can make sure that everything is done right. They can also advise you about the potential downsides of filing and help you explore alternatives so that you go into this process with all of the information you need to make an informed decision.
Contact Our Law Firm
Filing for bankruptcy is a big decision, so contact the Lauterbach Law Firm and schedule a consultation with our team. We can help you learn more about how your credit report will be affected and what other options you might have. Get started on your path to a fresh financial start today.
